Employers are looking into the future with confidence
According to the latest JobsOutlook report, employers’ confidence in the UK economy rose to a net figure of -31 in October-December 2019, two percentage points higher than the previous rolling quarter. In view of this, their confidence in making hiring and investment decisions also improved, rising by four percentage points to net: -3.
In particular, confidence levels in December were significantly higher than the previous two months – business confidence in the economy and in hiring rose to net: -26 and net: +9 respectively.
Despite confidence levels increasing, hirers are still worried about skills shortages – almost half (49%) of employers expected find to find a shortage of workers for permanent roles. Employers of permanent staff were most concerned about sectors like construction, health and social care, which could be particularly affected by the government’s plans for a more restrictive immigration policy.
Other key data points from the latest JobsOutlook include:
? Forecast demand for permanent staff remained firmly in positive territory, sitting at net: +21 in the short term and net: +26 in the medium term.
? Demand for temporary agency workers also rebounded this quarter. Short-term demand rose by nine percentage points to net: +9, while demand rose by four points to net: +3 in the medium term.
? The proportion of employers of temporary agency workers who said that these workers are important for managing fast-changing organisational requirements rose from 53% to 68% year-on-year.
? Three in four (76%) employers of temporary agency workers said that it is important that the recruitment agency provides management information as a service, up from 58% a year earlier.