Employers feeling more confident about UK economy, study shows

A report from the Recruitment & Employment Confederation (REC) has found that more employers are feeling positive about the UK economy, with confidence reaching its highest level since August 2017.

The study found that 30% of employers in the UK are feeling confident about the future prospects of the economy, compared to 29% who believe that economic conditions are getting worse.

Positive

Employers were also found to be feeling positive about their hiring and investment plans, with more than 30% of respondents expecting a boost in confidence.

While confidence has improved, there is still some uncertainty among employers when it comes to permanent hiring. However, 41% are tackling these uncertainty issues by using temporary agency workers, a year-on-year increase of 9%.

The REC’s study comes after figures from the Office for National Statistics showed that pay growth is now higher than inflation, with employers now competing with each other to attract jobseekers.

Candidate availability is a concern for UK employers, with more than 45% stating that they were worried about being able to access candidates for permanent job roles.

Encouraging

Commenting on the report, the REC’s Director of Policy Tom Hadley said that it is encouraging that UK employers are more optimistic about the economy and that this is having a positive impact on the hiring intentions of temporary staff.

He added that this stresses the importance of a vibrant temporary and contract staffing market in periods of uncertainty and is good news for those who are looking for a greater amount of flexibility in their career to fit around their family life or studies.