Employer confidence in the economy has moved into negative territory, using the latest JobsOutlook survey from the Recruitment & Employment Confederation (REC).
The net balance fell from +6 per cent a few weeks ago to -3 % inside latest report, as 31 % of employers now expect the economy to worsen and easily 28 percent expect it to raise.
Employers will always be planning to hire, with 1 in 5 (19 percent) about to increase permanent headcount next 12 weeks.
Confidence for making hiring and investment decisions remains positive with a net balance of 10 per cent, but are at its lowest over the past year.
In accent symptoms of deteriorating employer confidence, ndividuals are also starting to be pessimistic. The GfK’s index of consumer confidence fell to -12, equalling last year’s post-referendum low.
The latest JobsOutlook survey of 601 employers also shows:
- 40 per-cent of employers have no spare capacity and might need to recruit in order to reach additional demand
- more employers express concerns regarding a absence of appropriate candidates for construction jobs (both temporary and permanent) than almost every other area.
REC Ceo Kevin Green says:?”The jobs market continues to do well despite growing uncertainty. However, this drop in employer confidence should raise a sore point.
“Businesses are continuing to employ to fulfill demand, but issues like use of labour, Brexit negotiations and political uncertainty are coming up with nervousness. Employers while in the construction sector are specially concerned because they rely heavily on EU workers to fulfill the growing sales of housing also to keep the government’s infrastructure plans.
“The added factor of dropping consumer confidence is putting some businesses on edge. If people reduce their spending, businesses shall be impacted.
“The government need to do more to generate an environment where businesses have clarity. That means clearly planning what Brexit plans mimic and how employers can continue to keep recruiting people they really want within the EU. The jobs publication rack in a very good place but employers will undoubtedly continue to hire and invest should they feel assured around the future.”