REC JobsOutlook: Employer confidence is on the up but hiring plans remain uncertain

  26th April 2018       Louise Woodward (Chartered MCIPD)
 Accounting & Finance, Company News, Employment, Executive Search, Human Resources, Office & Commercial, Recruitment, Temps


The latest JobsOutlook survey by the Recruitment & Employment Confederation (REC) has been published and shows that employer confidence in the economy has improved.

The survey revealed that 29% of employers believe economic conditions are worsening and 26% believe they are improving. Since March 2018 the net balance of employers who believe that economic conditions are getting better increased by seven points, however it is still negative at -3.

Employer confidence is on the rise which is great news, however plans to hire permanent staff still seems to be continuing to decrease with only 14% of employers stating intentions to hire new staff which is down from 22% this time last year.

On the other hand, temporary hiring plans from employers are becoming more certain, with 18% of employers in March stating they don’t know about their short term plans dropping to just 12% being unsure in the latest survey. This has also dropped from 34% in February.

The survey of 600 employers also shows:

* Availability of temporary agency workers is becoming more of an issue with nearly half (47%) of employers believing that there will be a shortage of suitable candidates for the sectors in their business, this has risen from a third (35%) last month.

* The proportion of employers who increased their number of employees (44%) or wages (47%) in the previous year has continued to fall since June 2017, this is likely to be because of the decline in employer confidence since the EU referendum.

REC director of policy Tom Hadley says:

“The boosted mood of employers is an important step forward, especially as permanent hiring has been on a downwards trajectory. This more positive vibe will hopefully see more businesses growing their teams and ramping up their hiring plans.

“However, we can’t get ahead of ourselves. Too many employers still feel down about the economy. Even if they want to expand their workforce, they are worried about finding the workers they need, especially for temporary roles. Short-term placements are crucial for jobs that are seasonal or project-based, like hotel staff during holiday season, or construction workers on major infrastructure projects.

“Employers in hospitality, construction and health especially rely on temporary workers from the EU and will suffer if they can’t access them. The post-Brexit immigration system has to reflect the importance of temporary staff and ensure that processes are as quick and efficient as possible.”

Louise Woodward (Chartered MCIPD)

Associate Director

Louise is an experienced specialist accounting & finance recruitment professional with over 30 years’ experience specialising in the sector during which time she has gained an esteemed reputation as one of the region’s leading recruiters evidenced by her long list of loyal and happy clients. Louise is also Group Secretary …

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