Following last month’s three percentage point improvement, UK business confidence levels dropped by a percentage point this month to -12 from -11 in November.
The Recruitment and Employment Confederation’s latest JobsOutlook report found that the drop back in employers’ confidence in the economy coincides with confidence in making hiring and investment decisions, declining by three percentage points, but remaining firmly in positive territory to a net of +13, the lowest level recorded since April 2018.
Sixty-one per cent of employers anticipate economic conditions will be more challenging next year than in 2018, up from 51% when the question was asked in December 2017, showing there has been little or no progress by government to reassure employers, with only three per cent of respondents saying that economic conditions will be less challenging in 2019.
However, despite this, 47% of employers expect their business to perform better next year than in 2018 and just nine per cent think it will perform worse. 44% expect their business to perform as well next year as they did in 2018, indicating employers are making plans to respond to adverse economic conditions.
Almost half (49%) of UK employers who hire permanent staff expressed their concern this quarter over the sufficient availability of candidates for permanent jobs, up from 44% a year earlier, with anticipated shortages of hospitality workers causing most anxiety for employers.
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Email JaimeForty-six per cent of employers intending to hire temporary workers expressed concerns over the sufficient number of agency workers with the necessary skills they require, up from 35% this time last year.
Neil Carberry, Recruitment & Employment Confederation chief executive, commented, “Britain’s jobs market is resilient, but it can’t defy gravity indefinitely. The current uncertainty around Brexit means firms can’t invest with confidence – and that means lower growth and fewer opportunities in future. We must ensure that the concerns flagged in our survey do not lead to a downward trend in our jobs market.”
“In times of uncertainty, flexible working arrangements provide a crucial outlet for employers and workers. The government’s workplace reforms announced this week must be implemented effectively in order to maintain this and find the right balance between flexibility and fairness.”
“Today’s report also underlines key staff shortage areas in our economy, from healthcare to logistics, and from manufacturing to or our world-leading creative industries. As well as upskilling our workforce, the need for an evidence based immigration strategy has never been more pressing. We hope that the government is listening at this crucial and uncertain time for UK business.”
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