UK businesses need to hire more to meet demand

(3 minutes to read)

Umbrella company contractors will be interested to learn that despite business confidence deteriorating in recent months, many say that they still need to hire more workers in order to meet demand.

The latest JobsOutlook survey, carried out by the Recruitment and Employment Confederation (REC), revealed that 34% of employers said that they have no capacity to take on more work without taking on more workers.

Forty-three per cent said that they have only ‘a little’ spare capacity and would need to grow their workforce in order to meet an increase in demand.

This is fantastic news for contractors, freelancers and permanent workers alike.

The report, which surveyed 602 employers in the three months to August also found that vacancies in engineering and tech, construction, and health and social care are particularly difficult to fill due to a shortage of suitable candidates.

REC Chief Executive Kevin Green, commented on the findings, “With record-high employment in the UK the fundamentals of the jobs market are very strong. Thanks to a resilient business-as-usual attitude from consumers since the referendum, demand on businesses has remained buoyant and this is reflected in employers saying they will actively expand their workforces in the coming months. 

“This is good news, but there are question marks around the sustainability of positive trends we have seen since the referendum. Skills shortages are a major problem in many sectors, one that will only get worse if the supply of skilled EU workers is in any way curtailed. Employer confidence has fallen significantly, suggesting that while businesses continue to perform well, there is much anxiety about what the future holds. 

“The government can help to allay these concerns. We hope that fiscal stimulus will be top of the agenda in the Chancellor’s Autumn Statement. That, coupled with an immigration policy designed to help businesses thrive, will improve confidence and bolster the success we have seen so far.”     

Daniele Cantello is an Contract Manager for Contractor Umbrella Ltd, one of the UK’s Most Respected Umbrella Companies. Learn more about Daniele on Google.

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