Almost two thirds (60%) of workers in the UK are optimistic about their job security in the next six months, according to the latest Robert Half Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr).

This is the highest job stability reading since Q1 2023.

Meanwhile, pay confidence also spiked, up 23.1 points, bringing this pillar back into positive territory. This represents the strongest quarterly gain of all four pillars in the JCI.

Overall, the Jobs Confidence Index rose 5.3 points in the second quarter, up to 51.6 – the highest reported in almost two years. A reading between -30 and 30 is considered a ‘normal’ rate of confidence. According to Robert Half, these persistently high levels of job and pay security are reflective of the on-going impact of skills shortages that put workers in the driving seat.

Matt Weston, senior managing director UK & Ireland, at Robert Half, said in a press release, “Labour market tightness remains unchanged as a slight decline in unemployment was matched by a continued decline in vacancies. Much of this tightness can be attributed to high levels of economic inactivity since the pandemic creating a dearth of much need skills. As a result, worker job confidence is on the rise and wage growth, although declining, is tracking above inflation. However, the issue underpinning worker confidence is the ongoing skills shortages we are facing.”

“Skills shortages harm employers, and hinder company – and therefore national – growth prospects, productivity, and innovation,” Weston added. “Conversely, the demand for skilled talent continues to keep the ball in workers’ courts where bargaining power is concerned. Armed with confidence in their niche skill sets and experience, today’s confident workers can jump ship to pursue new opportunities if their employer doesn’t meet their reward and career expectations.  Without increased support from the government and businesses, systemic skills shortages combined with the tight labour market risk wage growth that could see inflation creeping back up once again. This could cause a significant drag on economic prospects at odds with the growth agenda.”

Recent Office for National Statistics data showed that the UK unemployment rate (for people aged 16 years and over) was estimated at 4.1% in May to July 2024, below estimates of a year ago, and decreased in the latest quarter. In June to August 2024, the estimated number of vacancies in the UK decreased by 42,000 on the quarter to 857,000. Vacancies decreased on the quarter for the 26th consecutive period but are still above pre- pandemic levels.