UK Employers' Confidence in Economic Conditions Falls for Third Consecutive Month - REC

Employer confidence in the economy has fallen for the third month in a row, according to the latest JobsOutlook survey by the Recruitment & Employment Confederation (REC). 

An increasing number of businesses think that economic conditions are worsening, with the net balance falling from -3 in August to -7 in September and -9 in the latest report. 

The net balance of employers planning to increase temporary agency worker headcount within the next three months has also fallen to -9 across all sectors. However, the demand for temporary workers within low-skilled occupations such as drivers and hospitality remains positive. 

The latest JobsOutlook survey of 600 employers also shows:

• almost seven in ten employers (69%) state that they are using agency workers to cover leave or absences, making it the number one reason to hire agency workers 
• two in five (42%) employers said they had no spare workforce capacity
• in the health & social care sector, employers feared a shortage of temporary and permanent candidates

REC chief executive Kevin Green says: 

 

“It is very worrying that for the third month now, more employers feel that economic conditions are getting worse. 

“Although the demand for temporary agency workers is declining, the demand for permanent staff remains strong – which is a positive sign. The jobs market’s unprecedented growth is at a tipping point. Clarity around trade, residency and immigration could prevent a rapid decline in the UK’s successful labour market. We’re looking for political leadership. 

“Regarding workers’ availability, the anticipated shortage of candidates in the health & social care sector could have severe consequences. Non-UK nationals make up around ten per cent of the workforce in this sector. There have already been predictions that the NHS in England might suffer its worst winter in recent history as skills shortage start to bite and workers from the EU go home while fewer apply for roles.” 

Ends 

 

Notes to editors:  

 

1. For more information, contact the REC Press Office on 0207 009 2157/2192 or pressoffice@rec.uk.com. An ISDN line is available for interviews on 0207 021 0584.

2. JobsOutlook is produced by the REC in partnership with ComRes. ComRes interviewed 600 UK employees and owners involved in hiring by telephone between 28th June and 14th September 2017. Data were weighted to be representative of UK adults in employment by region, broad industry sector and public / private sector split. ComRes is a member of the British Polling Council and abides by its rules. Data tables are available at www.comresglobal.com

3. Figures about health & social care sector from REC report Building the post Brexit immigration system (2017): In 2016, 5 per cent (or 202,800) of health and social care workers were EU nationals, and five per cent (202,400) were non-EU (non-UK) nationals.

4. Jobs transform lives, which is why we are building the best recruitment industry in the world. As the professional body for recruitment we’re determined to make businesses more successful by helping them secure the people they need. We are absolutely passionate and totally committed in this pursuit for recruiters, employers, and the people they hire. Find out more about the Recruitment & Employment Confederation at www.rec.uk.com