JobsOutlook shows businesses have renewed confidence

New data from the Recruitment & Employment Confederation (REC) shows that businesses have become more confident in their ability to hire new staff.

The REC’s latest ‘JobsOutlook’ survey shows that employers’ confidence in making hiring and investment decisions has increased by 10 percentage points from the previous rolling quarter. It has returned to positive territory for the first time since October 2019 and sits at a net figure of +7.
 
Demand for permanent staff also remains high, both in the short and medium term, at +21 and +26 respectively. Businesses are looking to expand their workforce after months of uncertainty and delay.
 
However, half (49%) of employers of permanent staff are already worried about finding enough candidates to fill their full-time vacancies. These worries are especially pronounced in sectors like health and social care, and construction – industries where the government’s new immigration policy will have serious negative consequences for allowing labour into those sectors.

Tom Hadley, director of policy and campaigns at the REC, said: “Businesses across the country have grown more confident since the election. With more certainty about what lies ahead in the short term, many have taken the opportunity to start hiring again. Now that demand for staff is on the rise and the majority of employers have little or no spare capacity in their workforce, staff availability is the major challenge.

“As a result, last week’s immigration policy announcement has worried many employers. Sectors like healthcare, construction and logistics currently rely on workers from overseas, and are already facing labour shortages. Although the government might refer to these roles as ‘low-skilled’, they are highly important – not just for employers but also for patients, consumers and existing staff who are already overworked. We need a temporary work visa that allows businesses to hire the people they need at all skill levels and pay grades.”

Other key points include:

  • Demand for temporary agency workers fell back into negative territory this quarter. Large employers especially have become more negative about hiring temps, perhaps due to the administrative burden of the upcoming IR35 changes.
  • More employers highlighted the importance of agency workers for responding to growth (up from 57% to 69%) and for managing organisational change (up from 54% to 68%) compared to a year earlier.
  • Seven in 10 (71%) employers who hire agency workers said that it was important their recruitment agency partners provide information on managing their temporary workforce as a service.

• Comment below on this story. You can also tweet us to tell us your thoughts or share this story with a friend. Our editorial email is [email protected]

NEW TO THE MARKET: 19-23 OCTOBER 2020

This week’s new launches include: CV-Library, ThriveMap

New to Market 19 October 2020

Short promoted to CEO Randstad UK & Ireland

Managing director Randstad UK Vicky Short (pictured) has been promoted to CEO for Randstad UK & Ireland from 1 January 2021.

People 16 October 2020

CONTRACTS & DEALS: 12-16 OCTOBER 2020

This week’s new contracts & deals include: Alexander Mann Solutions, Bullhorn, Concept Information Technology, Executive Heads

Contracts 12 October 2020

McGinley Group rebrands and relaunches as MCG Group

Multi-sector specialist recruiter McGinley Group has rebranded and today launched itself as the MCG Group.

New to Market 7 October 2020
Top