REC report suggests Employer confidence in economy stabilising

26 Jun 16:00 by Martin Milsom


Employer confidence in the economy has stabilised after a fall following the EU referendum result a year ago, according to the latest JobsOutlook survey by the Recruitment & Employment Confederation (REC). 

The survey of 607 employers shows that a net balance of +5 per cent think that economic conditions in the country are getting better. Despite recovering and stabilising following a low of -4 per cent in November 2016, confidence in the economy remains significantly worse than before the EU referendum. In June 2016, just before the vote, a net balance of +26 per cent was recorded.  

Asked about confidence in their own company’s hiring and investment decisions, employers are more optimistic, with a net balance of +18 per cent saying they expect it to improve according to the latest report. However, this compares to +31 per cent recorded this time last year. 

Following the publication of official data showing that UK unemployment remains at 4.6 per cent (the joint-lowest level since 1975), this month’s JobsOutlook reveals:

  • 35 per cent of UK employers have absolutely no spare capacity within their organisation to absorb more work 

  • 42 per cent anticipate a shortage of candidates for permanent hire in at least one skills area

  • demand for industrial workers and drivers is particularly high. 

According to data published by the REC immediately after the general election, a third (33 per cent) of UK employers think the new government’s top priority for the labour market should be to develop a strategy to make sure businesses have people with the skills they need.

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Sitec are corporate members of the Recruitment and Employers Confederation (REC).