07/11/2002

Labour Turnover survey shows marked slowdown

The latest Chartered Institute of Personnel and Development's (CIPD) Labour Turnover survey has shown a marked decrease in labour turnover in 2001.

The survey found an overall labour turnover rate of 18.2%, which is a return to the pattern shown since the survey began in 1995. The rate was almost exactly the same as 1999, but well down on the 26.6% recorded in 2000.

The 2002 Labour Turnover survey, which showed a noticeable increase in 2001, was out of step with recent trends, and came against a backdrop of a sharp slowdown in manufacturing and technology, a continued boom in the service sector and steadily falling unemployment.

CIPD Chief Economist, John Philpott says: "This combination had a perverse impact on labour turnover by simultaneously boosting the level of redundancies and the number of people quitting their jobs to seek alternatives.

The latest survey, which covers the year 2001, showed that while the redundancy rate continued to rise during the year, the quit rate fell sharply, as the pace of total employment growth slowed in line with lower private-sector recruitment activity, dragging down the overall turnover rate.

Sales staff had the highest turnover rate, at 23.9%, which was significantly higher than that for managers, at 12.0%. Craft and skilled manual employees had the lowest turnover rate at 9.6%.

Mr Philpott said: "Sales staff were the only occupational group to buck the overall trend and show an increase in turnover last year. In the retail sector this might be to do with a continued strong performance, and employers competing for staff to meet buoyant consumer demand."

While almost half of the organisations surveyed (47%) had made redundancies in 2001, this figure remains unchanged from the previous year.

The most commonly cited reason was "reorganisation" which was reported by 53% of organisations making staff redundant.

(SP)

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