Employers Ignore Slowdown to Continue Hiring

The jobs boom in Britain will continue to grow as employers say that they plan to continue hiring, regardless of signs that the economy is slowing down.

Economists had worried that the remarkable surge in employment of the United Kingdom would falter in the face of weaker growth in terms of GDP, but so far firms have defied those fears.

The number of companies that are getting more confident in their investment and hiring decisions outweighed those that are becoming more downhearted by a margin of 10pc in a  survey that was made in October by the Recruitment and Employment Confederation.

It is the third consecutive 10pc reading, implying maintained resilience in recruitment, eve though this is below the 20pc in February and from the 32pc in July 2016.

By contrast, a net balance of 9pc regards that the overall economy is worsening. However, it has not put them off their pace with regards to hiring.

Unemployment is at a 42-year low already and seems to be set to continue dropping if employers live up to these plans on recruitment.

The REC believes that more clarity regarding Brexit plans would help to reinforce this picture by calming the fears of bosses over the economic situation.

“It is very worrying that for the third month now, more employers feel that economic conditions are getting worse,” stated the REC’s chief executive, Kevin Green.

“Although the demand for temporary agency workers is declining, the demand for permanent staff remains strong – which is a positive sign. The jobs market’s unprecedented growth is at a tipping point.

“Clarity around trade, residency, and immigration could prevent a rapid decline in the UK’s successful labour market. We’re looking for political leadership.”

The decrease in unemployment has made it more difficult for companies to look for the staff that they need, especially as net immigration is slowing.

Firms in the social care and health industries are having a hard time to recruit, as are businesses that are involved in the education and hospitality sectors.

In 2017 17pc of employers that are looking for temporary staff said that there was a shortage of agency workers. Currently, that number has increased to 39pc.

One way to try to ease the gap is by increasing wages. The survey discovered that 55pc said that they had increased pay during the past year.

However, there are only a few signs regarding a sustained increase in incomes.

The proportion that are reporting pay increases has dropped from 58pc in September and from 68pc in June.