Businesses Optimistic Despite Harsher Conditions in 2017 – REC
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Three quarters of UK employers (76 per cent) expect economic conditions to be more challenging in 2017 compared to 2016, according to a poll of employers by the Recruitment & Employment Confederation (REC).
There are signs that the jobs market is slowing. The REC’s latest JobsOutlook survey of 601 employers predicts a softening in short-term hiring. Employers intending to increase their permanent staff headcount within the next three months has reduced to one in five (21 per cent), down from 24 per cent reported last month. Similarly, demand for permanent staff has reduced in all sectors except health & social care and education.
Skills shortages remain a challenge for businesses. Half of all employers (50 per cent) anticipate a shortage of suitable candidates for some permanent roles this year. Employers anticipate that roles in engineering & technology, health & social care, and hospitality will be particularly affected by skills shortages.
Despite harsh economic conditions, businesses remain self-confident. Three quarters of employers polled (74 per cent) say that their business will perform better this year compared to last year.
REC Chief Executive Kevin Green says:
Ends
Notes to editors:
1. For more information, contact the REC Press Office on 0207 009 2157/2192 or pressoffice@rec.uk.com. An ISDN line is available for interviews on 0207 021 0584.
2. JobsOutlook is produced by the REC in partnership with ComRes. ComRes interviewed 601 employers and owners involved in hiring by telephone between September 29th and December 16th 2016. Data were weighted to be representative of UK adults in employment by region, broad industry sector and public / private sector split. ComRes is a member of the British Polling Council and abides by its rules. Data tables are available at www.comresglobal.com
3. The poll about economic conditions and business performance in 2017 is based on a sample of 200 employers from one wave of JobsOutlook between 30th November and 16th December. Full questions and answers are below:
I am now going to read out some pairs of statements. For each one, please tell me which comes closest to your opinion.
Statement |
Per cent |
UK economic conditions in 2017 will be more challenging than in 2016 |
76 |
UK economic conditions in 2017 will be less challenging than in 2016 |
10 |
No change |
14 |
Statement |
Per cent |
My business will perform better in 2017 than in 2016 |
74 |
My business will perform worse in 2017 than in 2016 |
10 |
No change |
15 |
4. The latest ONS data (published Wednesday 18 January 2017) is available at: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/jan2017
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