Employer confidence in the economy improved in April, with some signs that City firms in particular are on the lookout for talent in spite of an overall negative outlook.
The balance of employers who are more optimistic about economic conditions improved by seven points in the last month, according to a survey of more than 600 employers by the Recruitment and Employment Confederation (REC) to be published today.
However, 29 per cent still think economic conditions are worsening, compared to 26 per cent believing there has been an improvement.
Employer confidence to make hiring and investment decisions, as well as in the broader UK economy, has fallen significantly since the EU referendum in June 2016 – although both measures have exhibited a notable rebound during the course of 2018 so far.
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The continued wariness from employers reflects a mixed picture across different industries.
City firms are still on the lookout for employees, according to separate data to be published today by recruiter Robert Walters. Their figures show demand for professionals in the City rose by eight per cent in March compared to the same time last year.
Chris Hickey, Robert Walters chief executive for the UK, Middle East and Africa, said: “While many banks and financial services firms took a more cautious approach to recruitment in 2017, hiring levels have steadily risen this year as employers look to take advantage of opportunities in the market.”
“In particular, operations specialists have been highly sought after, with banks looking to source specialists in over-the-counter trade support, collateral, loans, securities and client services/trade support.”
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However, the data also suggest workers themselves are wary of moving jobs, with growth in the number of City jobseekers of only two per cent year-on-year, despite a steeper jump compared to February.
The British labour market has posed a puzzle for economists in the last two years, with historically low levels of unemployment – which dropped to a four-decade low in February – alongside tepid growth in real wages.
The REC data will show the availability of temporary workers is becoming a growing concern for employers, with nearly half, 47 per cent, of employers believing they will face a shortage of candidates in their sectors, a steep rise from the 35 per cent reading in March,
However, the proportion of employers who have increased staff numbers or pay has fallen steadily since June 2017, with the REC pointing to uncertainty around the Brexit process as the key driver for lagging pay.
REC director of policy Tom Hadley said:“The boosted mood of employers is an important step forward, especially as permanent hiring has been on a downwards trajectory. This more positive vibe will hopefully see more businesses growing their teams and ramping up their hiring plans.”
Read more: Brexit and Beast from the East blamed for poor jobs figures
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