REC: Jobs Outlook - November - Hiring intentions increased despite economic confidence dropping
Thursday, 24 November 2022
Hiring intentions increased despite economic confidence dropping
Confidence
In August-October 2022, business confidence in the UK economy fell by a further 2% from the previous rolling quarter to net: -69, a new record low. At net: -68 in October, the barometer has been in negative territory for 12 months. However, employers in October (net: -68) were more optimistic than in September (net: -69) and August (net: -71).
Employers’ confidence in making hiring and investment decisions stayed the same as the previous rolling quarter at net: -27. Similarly, there was a slight uptick in October to net: -24 from net: -26 in September and net: -31 in August.
Permanent recruitment
Do you think the number of permanent workers in your organisation will increase or decrease in the next three months?
In August-October 2022, employers’ intentions to hire permanent staff in the short-term rose by 1% to net: +18. This was the first increase in sentiment since January-March 2022. Regionally, sentiment was the highest in the North of England (net: +23), followed by the Midlands (net: +21). When it comes to business size, mid-sized (50-249 employee) organisations’ sentiment remained higher at net: +27, while large-sized (250+ employee) organisations’ sentiment rose by 5% to net: +16. Forecast demand in the public sector increased to net: +12 from net: +9, and demand stayed strong for private businesses at net: +19.
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 October, employers’ intentions to hire temporary agency workers in the short-term rose by 1% to net: +7. Whilst hiring intentions were notably higher in the Midlands at net: +22, the North of England (net: +8) recorded a 5% increase in sentiment. Forecast demand for mid-sized (50-249 employee) enterprises remained buoyant at net: +11, and both private and public sectors’ sentiment remained stable in positive territory at net: +7.
Topical question
Almost three in ten employers believe that the ongoing candidate shortages have made them more likely to hire temporary workers.
For other employers, roughly two in ten expressed that it has made no impact on their likelihood to hire temporary workers (20.6%). Only a few employers surveyed indicated that it has made them less likely to hire temporary workers (11.5%).
