Employers are feeling more positive about hiring, investment and the economy ahead of Chancellor John Healey's first Budget, but confidence remains fragile and in negative territory, according to the latest JobsOutlook from the Recruitment and Employment Confederation (REC).
Employers' view of how the UK economy is performing improved by eight percentage points to net -39% in June to August, compared with the previous quarter. Confidence in making hiring and investment decisions rose by six points to net -8%.
The short-term permanent hiring outlook was little changed at net +8%, with the North of England (+11%) and the Midlands (+10%) above average. Short-term temporary hiring stood at net +2%.
Bligh: 'Let's not mistake improvement for recovery'
REC interim chief executive Maxine Bligh said the Budget was a chance to build on the improvement.
"Businesses are feeling better than they were three months ago, but let's not mistake improvement for recovery. Sentiment on both scores remains in net negative territory, which shows confidence is improving but not yet at the levels needed to deliver the growth businesses and the Chancellor want.
"A strong labour market is fundamental to delivering sustainable growth and the Chancellor has the chance to create better conditions for growth in his first Budget."
Bligh called for a phased restoration of the National Insurance threshold, greater investment in childcare, healthcare and transport, and further reform of the Growth and Skills Levy. She also urged ministers to exempt recruitment agencies from guaranteed hours proposals, arguing that temporary agency work is a crucial route into jobs for young people not in education, employment or training.
Apprenticeships 'puzzle'
Responding to the Chancellor's conference speech in Liverpool, REC director of campaigns Shazia Ejaz said the apprenticeships announcement should lead to further action in the Budget to encourage employers to create entry-level opportunities.
"Hopefully, the new mayor-led local apprenticeship service will simplify the process. Involving recruiters would complete the puzzle, bringing together local leaders, training providers, employers and recruitment experts to help more young people skill up to meet the demands of local employers."
JobsOutlook is produced with Whitestone Insights and surveyed 704 UK employers between 15 June and 18 August.
