JobsOutlook data confirms drop in employer confidence due to coronavirus

New data from the Recruitment & Employment Confederation (REC) collected between 2 March and 20 March shows that the coronavirus crisis hit employers hard in the first part of the UK slowdown to fight the virus.

The latest JobsOutlook report shows that employer confidence in the UK economy has dropped by 22 percentage points between February and March, from a net figure of -1 to -23. This was mainly driven by a dive in sentiment among small businesses in particular. Meanwhile confidence in hiring and investment decisions fell by 21 percentage points to net: -5.

Some employers have still been looking to bring on staff in the short term. Forecast demand for temporary agency workers has increased from net: -2 in February to net: +13 this month, as some key firms in supply chains looked to bring in flexible staff to deal with the fast-changing landscape at the onset of the crisis.

Short-term demand for permanent staff stayed positive at net: +17, but with big differences between sectors, with demand higher than average for technology workers (net: +25) and drivers (net: +22).

Neil Carberry, Chief Executive of the REC, said:

“It’s no surprise that this global pandemic has caused the UK’s labour market to stall. What we should remember is this hasn’t been caused by economic problems – it’s a deliberate choice that we’ve made to protect businesses and our fellow citizens. When the storm passes we will bounce back, and quickly.

“It has been great to see the government listen to us and others in taking bold measures to protect workers and businesses – but more needs to be done. Employers need access to government support very quickly so staff can be paid without unnecessary hurdles. We must also make sure that flexible workers are not left in the lurch – they are a vital part of the labour market, and must not be forgotten in the government’s support packages.”

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Notes to editors:  

JobsOutlook is produced by the REC in partnership with Savanta ComRes. Savanta ComRes interviewed 200 UK employers involved in hiring by telephone between 2 March and 20 March 2020. Data were weighted to be representative of UK adults in employment by region, broad industry sector and public/private split. Savanta ComRes is a member of the British Polling Council and abides by its rules. Data tables are available at www.comresglobal.com.

 

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The REC is the voice of the recruitment industry, speaking up for great recruiters. We drive standards and empower recruitment businesses to build better futures for their candidates and themselves. We are champions of an industry which is fundamental to the strength of the UK economy.

Find out more about the Recruitment & Employment Confederation at www.rec.uk.com.