Positive hiring intentions good news for recruitment agencies

Growing confidence in the UK economy has boosted hiring intentions among employers, with evidence that recruitment agencies are set to benefit, according to the Recruitment & Employment Confederation’s (REC’s) latest JobsOutlook.
Wed, 21 May 2014Growing confidence in the UK economy has boosted hiring intentions among employers, with evidence that recruitment agencies are set to benefit, according to the Recruitment & Employment Confederation’s (REC’s) latest JobsOutlook.

The monthly survey for April found that eight out of 10 employers (80%) plan to increase their permanent hiring in the next three months, up four points on last month. This is the highest since the JobsOutlook began in 2009.

And in welcome news for recruitment agencies, half of all employers (50%) say they plan to increase their use of agency workers in the next three months, up two points on last month.

The increasing tightness of the UK labour market is reflected by a rise in the proportion of employers with no spare staff capacity to accommodate increased levels of activity, from a quarter at the beginning of the year to one in three (34%).

REC chief executive officer Kevin Green says: “The economic recovery is having a real impact on the jobs market as these are the best results we have seen since this survey began in 2009. The labour market is becoming more candidate-led and it is vital that businesses look at their hiring processes to ensure that they are fit for purpose and will attract the candidates they are looking to hire.”

While positive about their hiring intentions, employers also voiced their concerns over skills shortages in the jobs market, with one in five (20%) predicting a problem finding people to fill technical and engineering roles in the next three months, and one in four (25%) predicting significant shortages in the next 12 months.

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