REC - Jobs Outlook - April 2022
Monday, 25 April 2022
UK businesses remain positive about their hiring intentions amidst growing economic concerns
“Businesses are seeing tax rates and uncapped energy costs rise, as well as pressure on salaries from staff who are seeing their own bills go up. So it is no surprise that firms are more concerned about the outlook. But British firms are resilient and investment in staff and growth remain on the agenda when employers think about their own business. We expect to see employers’ hiring plans decouple further from their economic outlook over the coming months as they face a tight labour market. Firms will need to find new, creative ways to attract candidates, as well as keep hold of the talented staff they have. Recruiters will play a vital part in helping them to do so.
“More employers are switching their hiring intentions towards permanent staff, as the urgent need for contingency staff to cover Covid absences decreases. But temporary workers remain vital to managing uncertain and fast-changing markets.”
Neil Carberry
Confidence
In January-March 2022, business confidence in the UK economy fell by four percentage points to net: -11. In March alone, sentiment plummeted to net -26 signalling wider economic concern.
Employer confidence in making hiring and investment decisions also fell by five percentage points, although it remained in positive territory at net: +8.
Permanent recruitment
Do you think the number of permanent workers in your organisation will increase or decrease in the next three months?
In January-March 2022, employers’ intentions to hire permanent staff in the short-term rose by three percentage points to net: +28. Hiring intentions remained buoyant across the UK, with sentiment notably higher in London (net: +37). Additionally, both large (250+ employee) and mid-sized (50-249 employee) organisations were notably optimistic about increasing headcount, at net: +33 and net: +31, respectively.
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 March, employers’ intentions to hire temporary agency workers in the short-term decreased by 15 percentage points to net: +16. Regionally, there were stark differences in hiring intentions between London (net: +29) and the South excluding London (net: +3). Forecast demand remained high among small (0-49 employee) and large (250+ employee) firms, at net: +23 and net: +21, respectively. However, sentiment was significantly lower in mid-size (50-249 employee) enterprises (net: +2) and public sector organisations (net: +4).
Topical question
Three in five employers (59%) reported that the National Insurance contribution increase will not impact their business significantly.
One in five (18%) said it would reduce their ability to invest in their business, while 15% of employers said it would discourage further hiring or the creation of new jobs. A further 9% were worried that this will impact their ability to create new jobs this year due to rising financial pressures.
