REC JobsOutlook - February 2023
Wednesday, 22 February 2023
Agency worker demand in public sector rises significantly
Confidence
In November 2022-Janaury 2023, business confidence in the UK economy saw another uptick, rising by 4% to net: -64 from net: -68 in the previous rolling quarter. Employers in January (net: -57) were more optimistic than in December (net: -65) and November (net: -71).
Similarly, employers’ confidence in making hiring and investment decisions rose by 2% compared to the previous rolling quarter. At net: -28, this is the first increase in sentiment since December 2021-February 2022, albeit remaining in negative territory.
Permanent recruitment
Do you think the number of permanent workers in your organisation will increase or decrease in the next three months?
In November 2022-Janaury 2023, employers’ intentions to hire permanent staff in the short-term dropped by 1% to net: +10. Regionally, sentiment was more optimistic in the North and the Midlands, increasing by 2% and 1% to net: +13, followed by London (net: +11). When it comes to business size, mid-sized (50-249 employee) organisations’ sentiment rose by 4% to net: +20, while large-sized (250+ employee) organisations’ sentiment remained robust at net: +12. Forecast demand for the private sector stayed positive at net: +12, but sentiment in the public sector decreased to net: 0.
Temporary recruitment
Do you think the number of agency workers in your organisation will increase or decrease in the next three months?
In the three months to January 2023, employers’ intentions to hire temporary agency workers in the short-term rose by another 1% to net: +8. Whilst hiring intentions in the devolved nations and the Midlands remained higher at net: +32 and net: +11, other regions in the UK registered a decrease in sentiment. Forecast demand for large-sized (250+ employee) enterprises rose by 3% to net: +21, but mid-sized (50-249 employee) enterprises’ demand dropped to net: -9 from net: -7. While hiring outlook for private sector employers remained the same at net: +6, public sector employers’ sentiment skyrocketed by 20% to net: +28.
Topical question
More than two in five employers believe that they would prioritise intermediate level apprenticeship programmes (41%) if they could choose how the Apprenticeship Levy was spent to help staff in their organisations.
Employers also suggested that sector-specific training (39%), future skills training (37%), advanced level apprenticeship programmes (26%), and short modular training courses (26%) should be priorities to the Apprenticeship Levy.
Some employers saw higher level apprenticeship programmes (19%) as a priority to how the Apprenticeship Levy is spent.
