Many firms still hiring despite low business confidence

A new report has shown that business confidence in the UK economic outlook and their own ability to invest, has dropped significantly in Q2 2022.

The Recruitment and Employment Confederation’s (REC) latest JobOutlook report revealed that during April-June 2022, employer confidence in making hiring and investment decisions for their own business hit net: -13 – the same level as reported during the height of the pandemic.

Despite this, the data does show that many businesses are still trying to hire new staff.

Neil Carberry, Chief Executive of the REC, commented on the findings, “This new report clearly shows the effect of rising inflation and labour shortages on businesses across the country. The economy has slowed significantly from the post-lockdown bounce and the next few months look much tougher.”

Carberry added, “While firms are still looking to bring on new staff, this is really a reflection of how difficult businesses have found it to hire so far this year. All of this only emphasises the importance of companies working with professional recruiters on their plans – and for government to take action so we aren’t choking off the growth we need.”

“Part of the solution will be more inclusive recruitment processes, so it’s encouraging to see a fifth of companies pushing in that direction. But it also means investing in training and developing staff, and ensuring working conditions and benefits are competitive enough to help attract and retain talented people.”

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