Companies more confident in their ability to hire staff
New data published today shows businesses have become more confident in their ability to hire new staff.
The survey from the Recruitment & Employment Confederation (REC) found employers’ confidence in making hiring and investment decisions had increased 10 percentage points compared to the previous quarter.
Hiring confidence has returned to positive territory for the first time since October and sits at a net figure of +7.
Demand for permanent staff also remains high, both in the short and medium term, at net +21 and net +26 respectively.
Businesses are looking to expand their workforce after months of uncertainty and delay, the REC said.
However, half of employers are already worried about finding enough candidates to fill their permanent vacancies, the REC said.
Recruitment concerns are especially pronounced in sectors like health, social care and construction – industries where there government’s new immigration policy will have a serious impact on the pool of staff available.
Tom Hadley, director of policy and campaigns at the REC, said: “Businesses across the country have grown more confident since the election.
“With more certainty about what lies ahead in the short term, many have taken the opportunity to start hiring again.
“Now that demand for staff is on the rise and the majority of employers have little or no spare capacity in their workforce, staff availability is the major challenge.
Demand for temporary agency workers fell back into negative territory during the quarter. Large employers have become more negative about hiring temporary workers, which the REC said could be due to the administrative burden of the upcoming IR35 tax changes.