The REC’s report, released this morning, also reveals that the proportion of employers worried about the availability of agency workers rose six points this quarter to 72%. This figure is more than double the figure expressing concerns a year earlier (34%). 

However, despite candidate shortages, UK employers’ confidence to hire and invest hit its highest level for 12 months, but still 15 percentage points below the trend before the Brexit referendum. Meanwhile employers’ confidence in wider economic conditions is also at its peak for the last year, albeit 20 points less than before the referendum. 

Hiring intentions were higher, both in the short and medium term, for temporary agency workers than for permanent staff (by 6 and 4 points, respectively), while more employers are using agency workers to manage uncertainty – up 19% on the same period last year. 

Commenting on the data, REC CEO Neil Carberry said the candidate shortage is likely to be caused by a combination of people being less willing to take a chance on a move, and a falling trend of workers coming from the EU – especially in sectors like construction and hospitality. 

“The move to hiring more temporary rather than permanent staff also reflects employers’ sense that they need to be flexible to adapt to whatever outcome we reach on Brexit,” he said.

“To protect jobs and hiring, businesses across the country will be looking for the government to secure a deal on Brexit that delivers the transition period and simple, ongoing access to the EU workers who can help keep our key industries growing in a time of labour shortage,” Carberry added.

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