UK employers’ confidence in making hiring and investment decisions for their own business continued to rally during the April-June 2023 period, according to the latest Recruitment & Employment Confederation (REC) JobsOutlook.

The Outlook’s net balance of +7 showed more businesses growing in belief than those who were doubtful. This measure moved into positive in the spring season for the first time since early 2022.

Businesses’ views on the wider economy also improved but remained negative overall at a balance of -41 (April-June 2023). A higher-than-normal number of businesses answered ‘don’t know’ to questions on hiring plans. The Outlook suggested this may reflect doubt over this contrast between firms’ view of their own prospects and the wider economic picture.

The headwinds of inflation, interest rates and low growth are certainly making employers cautious when forecasting demand for staff, the REC added.

According to the JobsOutlook, demand in the next three months for permanent workers remained unchanged at +18 and for temporary workers at +8. Medium-term (four to 12 months) forecast demand for permanent workers dropped to +16 from +20 during February-April 2023 and for temporary workers it is in negative territory at -8.6. The contrast of growing confidence in their own business but caution on hiring decision-making reflects the unpredictability of the wider economic picture, the Outlook stated.

Neil Carberry, Chief Executive of the REC, said, “Businesses across the country are clear that they believe in their business and its plans, and they are continuing to hire. But concerns about the wider economic picture are slowing some decisions or reducing them in scale.”