One in Four UK companies set to make permanent hires
Despite the understandable dip in confidence following the Brexit poll result, a recent REC poll shows 25% of businesses plan to take on more staff in the next 3 months – the REC press release dated 26th October 2016 reads:
Wednesday, 26 October 2016
Almost a quarter (23 per cent) of UK employers plan to make more permanent hires in the next three months, with only three percent planning a reduction in their permanent workforce, according to the latest JobsOutlook survey by the Recruitment & Employment Confederation (REC).
Businesses are also seeking more temporary resource, with four in five (81 per cent) planning to maintain or increase their use of agency workers in the run up to Christmas.
However, the survey of 600 employers reveals that large organisations (250+ employees) are less likely to take on new permanent staff in the short term when compared to smaller businesses.
There also appears to be differences between businesses based in the South East and those based in the rest of the UK. In the South East (including London), 77 per cent of employers expect to increase or hold their existing temporary staff in the next three months. Meanwhile, 98 per cent of employers based in the North plan to increase or maintain their temporary workforce in the same period.
Overall, economic confidence has fallen according to the latest survey. Just 25 per cent of employers surveyed in July – September think UK economic conditions are improving. This compares to 48 per cent that cited improving conditions before the EU referendum (survey period March – May).
The JobsOutlook survey also shows that employers anticipate a shortage of candidates for permanent and temporary roles in engineering, tech, construction and health & social care.
REC Chief Executive Kevin Green says:
“The latest official figures show that employment remains at a record high. Our data suggests that this positive trend is set to continue, with employers actively looking to take on more staff in the last quarter of the year. Small businesses in particular are performing well and are seeking to grow. Strong consumer spending over the last few months has been a boon to the UK economy.
“However, there are signs that business confidence in the economy is slipping. Whilst it is still too soon to draw conclusions about the impact of the decision to leave the EU, the data suggests that London is feeling the brunt of the referendum result. Businesses in the financial sector in particular are looking at the political and economic environment with some trepidation.
Over half a million more people in work compared to this time last year & average weekly earnings up 2.3%
Looking at the Office of National Statistics data for October show 31.81 Million people in work in the UK in the last quarter, up 106,000 on the previous quarter and an encouraging 560,000 on the same time last year.
The main points for the June-August quarter were noted as follows :
Between March to May 2016 and June to August 2016, the number of people in work and the number of unemployed people increased. The number of people not working and not seeking or available to work (economically inactive) fell.
There were 31.81 million people in work, 106,000 more than for March to May 2016 and 560,000 more than for a year earlier.
There were 23.23 million people working full-time, 362,000 more than for a year earlier. There were 8.58 million people working part-time, 198,000 more than for a year earlier.
The employment rate (the proportion of people aged from 16 to 64 who were in work) was 74.5%, the joint highest since comparable records began in 1971.
There were 1.66 million unemployed people (people not in work but seeking and available to work), 10,000 more than for March to May 2016 but 118,000 fewer than for a year earlier.
There were 891,000 unemployed men, 12,000 fewer than for March to May 2016 and 81,000 fewer than for a year earlier.
There were 765,000 unemployed women, 23,000 more than for March to May 2016 but 37,000 fewer than for a year earlier.
The unemployment rate was 4.9%, unchanged compared with March to May 2016 but down from 5.4% for a year earlier. The unemployment rate is the proportion of the labour force (those in work plus those unemployed) that were unemployed.
There were 8.81 million people aged from 16 to 64 who were economically inactive (not working and not seeking or available to work), 65,000 fewer than for March to May 2016 and 231,000 fewer than for a year earlier.
The inactivity rate (the proportion of people aged from 16 to 64 who were economically inactive) was 21.5%, the joint lowest since comparable records began in 1971.
Average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 2.3% both including and excluding bonuses compared with a year earlier.
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