Employer confidence in the economy has stabilised after a fall following the EU referendum result a year ago, according to the latest JobsOutlook survey by the Recruitment and Employment Confederation (REC).
However, despite recovering and stabilising following a low of -4% in November 2016, confidence in the economy remains significantly worse than before the EU referendum.
In June 2016, just before the vote, a net balance of +26% was recorded. The latest survey of 607 employers shows that a net balance of +5% think that economic conditions in the country are getting better.
Asked about confidence in their own company’s hiring and investment decisions, employers are more optimistic, with a net balance of +18% saying they expect it to improve.
REC Chief Executive Kevin Green said that it was encouraging to see the labour market continue to perform well despite recent political and economic turbulence.
“As the Government plans for the EU negotiations,” he continued, “we urge policy-makers to put the skills crisis at top of the agenda. Organisations are only as good as the people they hire and this is true of big business as well as public services.”
This month’s JobsOutlook also reveals that 35% of UK employers have absolutely no spare capacity within their organisation to absorb more work while 42% anticipate a shortage of candidates for permanent hire in at least one skills area.
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