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UK — Employer's hiring expectations continue to build

16 June 2010

The June JobsOutlook* published today by the Recruitment and Employment Confederation (REC) reveals that one in three employers, one of the highest levels over the past year, are planning to grow their temporary workforce in the longer term at the same time as official data from the Office for National Statistics showed that 50,000 more temporary workers were employed in the first quarter of 2010 compared to 2009.

The increase in demand for temporary agency workers over the short-term has also been maintained with employers looking to make use of flexible resourcing as economic uncertainty continues.

Short-term demand for permanent staff seems also to be building with a net positive balance of 9%, significantly higher than last month's figure. The survey suggests that most employers are not predicting a real uptick in permanent staffing until the autumn at the earliest.

Commenting on the JobsOutlook findings, Roger Tweedy, the REC's Director of Research, said "here are increasingly positive signs of a gradual upturn in employers' hiring intentions, probably linked to greater post-election stability and a feeling that a Conservative Government is likely to be best for future job creation. Recruiters should also take heart from the fact that greater fluidity seems to be returning to the jobs market with recent survey data from Gfk NOP suggesting that up to six million workers are now planning to move jobs."

"These positive signs will be offset to some extent by what is happening in the public sector where the impact of the recession is only now starting to hit. Unemployment is likely to increase over the next 12 months as significant cuts in public expenditure are implemented: however our analysis suggests that demand for temporary agency workers, interim management and executive search is likely to grow to enable the significant change programmes being planned for the sector."

*JobsOutlook is based on a monthly survey of employers with results based on a sample of 200 on a three month rolling basis.



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