UK employers confidence about making hiring decisions and investments improved by one point over the period August to October 2023, to net +6, according to the most recent Recruitment & Employment Confederation (REC) JobsOutlook. 

September saw the largest monthly increase, to net +8, whereas August (net +5) and October (net +5) were more modest. 

The REC stated, “Given the focus of policy makers on getting business investment going to drive growth, these numbers should be seen as evidence that the potential exists for measures in the Autumn Statement to be taken up by firms.”  

This positivity comes amid concerns about the overall economy, suggesting a gap may be emerging between businesses’ economic forecasts and their outlook for their day-to-day operations. In the August to October period, business confidence in the UK economy remained at a similar level (-38), indicating an ongoing increase in concern. 

In terms of hiring, demand for permanent workers in the short term (next three months) rose slightly to +19. Medium-term (four to 12 months) permanent demand rose by +6 points to +23.   

In addition, the forecast demand for temporary workers in the short term also rose by 2% to +10. Recruiters seemed highly optimistic about the medium-term (four to 12 months) temporary hiring outlook which was up by 11% to net: +11.  

“We are a long way now from this time last year when firms were extremely concerned about the future for their own businesses,” said REC Chief Executive Neil Carberry in a statement. “Growing confidence in investing and hiring is a leading indicator of better performance, but we should be cautious in expecting growth to bounce back in the short-term. This steady but slow improvement will take several months to bear fruit, as shown by our data on firms’ views of the wider economy.” 

A strong growth strategy is key, Carberry continued. “Falling employer confidence in the wider economy, and not great broader consumer expectation for the economy, shows why the chancellor’s pro-business moves in the Autumn Statement are so important,” he said. “But it needs a powerful growth strategy to back it and really boost our economy. Employers’ attention will now turn to the spring budget to watch for a more cohesive industrial strategy.”