REC’s latest JobsOutlook shows London employers’ intention to hire permanent staff surging above an overall UK level that itself was also positive.
Employers’ intention to hire permanent workers can be a sign of their greater confidence in the UK economy – much needed after the tough conditions and economic slowdown facing so many over the last 12 months.
Kate Shoesmith, REC Deputy Chief Executive, said:
“The surge in London employers’ intention to hire is hugely promising because the capital is both a bell-wether for the UK economy as a whole and an important signal to international investors. There have been signs of a turn in the labour market in recent months, and so now we need this positivity to extend to businesses across the UK. Such a snowball effect is especially helpful for graduates and school leavers who are looking to take their first steps on the career ladder this summer, and those trying to get back into the labour market after time off work.
“The new government must seize on this air of optimism with labour market reforms that help rather than hinder employers’ ability to attract and retain workers. Business voices are ready to play our part in explaining the current labour market conditions and how to unlock future growth. We urge government to work with us as they develop plans for a new Employment Rights Bill and on the proposed Industrial Strategy, so it is underway, sooner rather than later.”
A look at the net outlook to increase permanent hiring (total percentage of intention to increase minus the total percentage of intention to decrease) in the most recent JobsOutlook survey covering 3rd June 2024 - 26th June 2024, in percentage points shows:
- Surveyed London employers’ intention to increase permanent employees in the short term (next three months) is much greater than for the rest of the UK (net 33.2 for London v net 18.4 for UK).
- And London employers are more likely to increase permanent headcount in the medium term (next four to 12 months), with a net outlook of 35.3 for London versus 15.3 for the overall UK.
A closer look at specific attitudes reported in that June period is also encouraging:
- London employers are far more inclined to ‘increase greatly’ their headcount of permanent employees in the short term (29.3% London v 6.9% UK).
- And the same proportion, 29.3%, of London employers surveyed said they will ‘increase greatly’ their permanent headcount in the medium term, compared to 4.7% for the UK level.
REC members are reporting a demand for permanent workers with skills in accounting, blue collar, construction, engineering, executive/professional (such as mid-management and project management roles), hotel & catering, IT and computing and nursing/medical/care, in London.
