London employers’ intention to increase permanent employees in the short term (next three months) could be a sign of what’s to come in recruitment across the UK, which can contribute to upping productivity and economic growth, according to data from the Recruitment and Employment Confederation (REC) and research firm Savanta ComRes.

The report is a look at the net outlook to increase permanent hiring (total percentage of intention to increase minus the total percentage of intention to decrease). The most recent JobsOutlook survey covering 3 June 2024 - 26 June 2024, in percentage points showed London employers’ intention to increase permanent employees in the short term (next three months) is higher than for the rest of the UK (net 33.2 for London v net 18.4 for UK). 

At the same time, London employers are more likely to increase permanent headcount in the medium term (next four to 12 months), with a net outlook of 35.3 for London versus 15.3 for the overall UK.  

A closer look at specific attitudes reported in that June period showed that London employers are far more inclined to ‘increase greatly’ their headcount of permanent employees in the short term (29.3% London v 6.9% UK). The same proportion, 29.3%, of London employers surveyed said they will ‘increase greatly’ their permanent headcount in the medium term, compared to 4.7% for the UK level.  

REC members are also reporting a demand for permanent workers with skills in accounting, blue collar, construction, engineering, executive/professional (such as mid-management and project management roles), hotel & catering, IT and computing and nursing/medical/care, in London. 

Kate Shoesmith, REC Deputy Chief Executive, said in a press release, “The surge in London employers’ intention to hire is hugely promising because the capital is both a bellwether for the UK economy as a whole and an important signal to international investors. There have been signs of a turn in the labour market in recent months, and so now we need this positivity to extend to businesses across the UK. Such a snowball effect is especially helpful for graduates and school leavers who are looking to take their first steps on the career ladder this summer, and those trying to get back into the labour market after time off work.”

Shoesmith continued, “The new government must seize on this air of optimism with labour market reforms that help rather than hinder employers’ ability to attract and retain workers. Business voices are ready to play our part in explaining the current labour market conditions and how to unlock future growth. We urge government to work with us as they develop plans for a new Employment Rights Bill and on the proposed Industrial Strategy, so it is underway, sooner rather than later.”