UK firms relying on temps to keep business going

Although business confidence in the UK economy has seen a dip, hiring and investment decisions remained in positive territory.

The Recruitment and Employment Confederation’s (REC) latest JobsOutlook survey found that employer confidence in the UK economy fell by five percentage points to net: -11 in October-December 2021.

Despite this, hiring confidence levels are on the up with demand for temps particularly strong.

Hiring intentions for temps in the short term increased by 15 percentage points to net: +30, and medium-term demand rose by nine points to net: +23.

Neil Carberry, Chief Executive of the REC, commented, “It’s no surprise that business confidence in the economy started to drop at the end of 2021, with the Omicron wave reaching its peak and inflation rising sharply. But despite this, the majority of employers are still looking to hire new staff.”

Carberry added, “Demand for temps rose particularly strongly last month to help firms ride out the wave of staff absences and keep business going. Agency work helps keep our economy running, getting people into work more quickly and helping companies meet demand.

“However, we also saw in our survey that employers expect difficulties in recruiting staff to be one of their biggest challenges this year. Labour shortages will still be with us long after COVID fades as a major economic issue, so it’s vital employers start to think about new ways to attract and train the staff they need. Recruiters are the experts in this area and can provide valuable advice.”

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