UK employers anticipate positive hiring expectations for the second quarter of 2023 with the Net Employment Outlook reaching 21%, down 10% on Q2 2022 but up 2% on the previous quarter, according to the latest ManpowerGroup Employment Outlook Survey.

A ‘Net Employment Outlook’ is calculated by subtracting those employers who plan to reduce staffing levels from those who plan to hire staff. A positive result indicates that more employers plan to increase rather than decrease staffing levels; a negative result reflects the opposite.

The ManpowerGroup Employment Outlook Survey is based on responses from 2,020 UK employers and asks if they intend to hire additional workers, maintain current headcount, or reduce the size of their workforce in the coming quarter (April to June 2023).

According to ManpowerGroup, in the context of record low unemployment and a historically tight labour market, employers continue to struggle to attract skilled talent, and in demand workers can’t find employers that fit their pay and skills needs.

“Our survey continues to show strong hiring intentions despite the economic climate, but hiring intentions are not translating into filled vacancies.” said Chris Gray, Director at ManpowerGroup UK.

Employers across all sectors plan to increase headcount. The IT sector leads the pack, with a Net Employment Outlook of +48%, an increase of 14% on last quarter and up 8% on Q2 2022. This figure is more than twice the national average Net Employment Outlook. IT is followed by Communication Services (+36%), Transport, Logistics and Automotive (+27%) and Financials & Real Estate (+27%).

“There is a mismatch between what workers want and what employers are offering,” Gray continued. “Employers across the country are still keen to take on new talent, and workers want to take on higher paying roles with greater development opportunities. However, they aren’t seeing these jobs advertised. Job descriptions are going unread because they aren’t offering the skills growth workers want. Employers need to be clear about the progression opportunities and the training they are providing.”

Among regions, the East Midlands led the way with a Net Employment Outlook of +29%, up 23% on the last quarter, followed closely by the South West (+26%) and London (+24%).

Across company sizes the Outlook Survey showed a Net Employment Outlook of +21% for Micro (1-9 employees), +18% for Small (10-49 employees), +22% for Medium (50-249 employees), and +24% for Large (250+ employees).

Gray added, “We are encouraged to see demand for workers the length and breadth of the UK – employers in all regions plan to expand headcounts. This is true especially of the East Midlands, which has seen hiring optimism surge since last quarter. Our insights tell us that a great deal of this demand stems from small and medium sized businesses which continue their optimistic streak in the region.”