JobsOutlook: Business sentiment on the turn as economy opens

Business confidence in the UK economy improved by 17 percentage points between early May and June. While confidence remains very low (at net: -46), the latest survey from the Recruitment & Employment Confederation (REC) saw the outlook start to turn away from the record lows of the spring. 

Alongside this, employers’ hiring intentions also improved. The latest JobsOutlook, conducted between 2-16 June, found that more employers are planning to expand their workforce than reduce it in the next three months, as the Coronavirus Job Retention Scheme (CJRS) continues to support firms to avoid redundancies. The net balance now sits at +6, an improvement of 11 percentage points from early May.

Employers’ hiring intentions for the medium term (the next 4-12 months) also improved, rising from net: +6 in early May to net: +15 in June.

The REC’s Jobs Recovery Tracker has already revealed that the number of job postings in the UK has been slowly increasing over the past few weeks. The number of new job adverts in the first week of June reached 112,000, 64% higher than the previous week.

Neil Carberry, Chief Executive of the REC, said:

“This survey adds to the evidence we are seeing all over the UK that as lockdown ends, at least some normal activity is returning. If the lockdown measures continue to ease and public confidence improves, we should start to see business leaders put their plans into action and hire. This normalisation process will also be vital both for making sure that many furloughed workers are able to return to their jobs, and limiting the spike in unemployment that is likely when CJRS ends.  

“The recruitment industry will be a vital part of this recovery, helping to place the right people into the right roles and get the country back to work.”

Ends

Notes to editors:  

JobsOutlook is produced by the REC in partnership with Savanta ComRes. Savanta ComRes interviewed 200 UK employers involved in hiring by telephone between 2 June and 16 June 2020. Data were weighted to be representative of UK adults in employment by region, broad industry sector and public/private split. Savanta ComRes is a member of the British Polling Council and abides by its rules. Data tables are available at www.comresglobal.com.

For more information and interview enquiries, contact the REC Press Office on 020 7009 2157, 020 7009 2192 or pressoffice@rec.uk.com. Outside of regular office hours, please call 07702 568 829.