Employer confidence towards the hiring of temporary agency workers in the short term increased when compared to last year according to the latest JobsOutlook survey by the Recruitment and Employment Confederation.

REC’s survey, which covered the period from February to April, showed that in the next three months from April, the net employers’ confidence stood at +14, which is four points higher than last year’s +10 number. Meanwhile, in the next 4-12 months, agency worker hiring intentions NET figure stood at +16, which is two points above the +14 figure from the same period last year.

Meanwhile, employers’ confidence in permanent recruitment in the next three months stood at a net balance of +14. This was the same for the next 4-12 months.

REC’s survey data also showed that overall employer confidence in UK economy turned positive for the first time since August 2017. According to the survey, 30% of employers are feeling more confident in the future prospects of the UK economy, compared to 29% who say they are getting worse, which leads to a NET balance of +1.

Confidence in making hiring and investment decisions remained at a NET +14.

Despite the improvement in confidence, employers are still showing signs of uncertainty in committing to permanent hiring plans overall.  Less than half, or 46%, of UK employers expressed concerns over the sufficient availability of candidates for permanent hire, particularly in the public service areas of health and social care and education.

However, 41% of employers are using temporary agency workers to manage any uncertainty. This was up 9% compared to the same period last year.

REC director of policy Tom Hadley, commented, “It is encouraging that employers are feeling more optimistic about the UK economy and that this is having a positive impact on hiring intentions of temporary staff. This underlines the importance of a vibrant temporary and contract staffing market in times of uncertainty and is good news for workers who seek more flexibility in their careers to fit around their studies or family life.”

“However, there is a way to go to get to a place where employers feel confident in making those longer-term plans for permanent hiring,” Hadley said. “At the same time, employers are reporting increasing concerns with regards over the lack of candidates for key roles. This requires a twin-track approach from government: delivering on the commitment to ramp up the UK skills base, whilst also developing an evidence-based post-Brexit immigration systems that maintain access to workers from the EU.”