October 27, 2021
Business confidence in hiring across the UK has plummeted: +21 in July-September, after hitting a net record: +33 in April-June, according to the latest JobsOutlook Recruitment & Employment survey Confederation (REC).
The net figure: +21 represents a third consecutive month of weakening and comes in the face of some winter uncertainties, including rising inflation, labor shortages and the growing spread of Covid-19. Confidence, however, remains at a historically high level.
While the demand for permanent staff remained high, intentions to hire temporary workers fell a little more. Demand for the next three months fell by 9% net: +8, while demand for the next 4-12 months fell by seven points net: +3.
The demand for permanent staff remained very high to net: +24 in the short term and net: +28 in the medium term.
The survey also found that in September one in two UK employers (50%) were experiencing labor shortages. Of these, more than half, or 55%, said they believed that offering higher starting salaries to new hires would help solve this problem, while more than a third (37%) believed that l Improving other work-related benefits, such as flexible working, would help.
At the same time, business confidence in the UK economy remained positive but fell by four percentage points to hit the net: +16.
Neil Carberry, CEO of REC, said: “We have seen skyrocketing demand in the job market for months now, with companies rushing to hire new staff as they reopen and reorganize to meet the changing needs of the workforce. clients. That initial rebound was always going to pass, and this investigation shows it’s starting to happen. “
“A slowing pace is not unexpected, nor a reason to panic, but it underscores how vital it is for government and business to work together on policies that will help soften the landing and turn the economy around. British.”
Referring to the upcoming fall 2021 budget announcement, Carberry said the Chancellor should look to boost jobs, wages and public finances by tackling sustainable growth.
“A budget for businesses would avoid taking money out of businesses when cash flow is under pressure and encourage business investment,” Carberry added. “The right approach to skills, including entry level, new technologies and better management will be essential. This will help create the high-wage, high-skill economy we all aim for, an economy that balances the treasury accounts and stimulates regional economies. The government also needs to work with business to ensure its programs are effective, not sound bites that don’t translate Westminster to local economies in all four countries.