Employer confidence in hiring returned to positive territory for the first time since the beginning of 2022 (January to March 2022). In February-April 2023, the net balance of employers’ confidence in making hiring and investment decisions was +2, according to research from the Recruitment & Employment Confederation.

At the same time, employers’ confidence in the UK economy has also started to improve to -43 from -51. As confidence improved, employers reported that forecast demand for both permanent and temporary workers in the next 3 months rose to +18.

Hiring intentions for permanent staff in the next 4 to 12 months also rose to +21 from +19. Forecast demand for temporary agency workers in the next four to 12 months, however, decreased slightly to +9 from +12. This may reflect firms feeling more able to make permanent hires.

 Neil Carberry, Chief Executive of the REC, said, “This data is good news, it shows firms starting to feel more confident again. Employers always feel more confident in the business they know, their own, so it is no surprise that views of the wider economy are lagging a bit. But a return to hiring is likely to re-emphasise the people and skills challenges we face.”

“Businesses across the country need to step up on their workforce planning to grow effectively – recruiters are there to help them with that. But we also need government action – from skills reform to immigration and employment regulation. As part of a cohesive industrial strategy, we need to start putting the people stuff first,” Carberry said.