The survey’s latest findings show employer confidence in the economy remains negative, with more employers continuing to think economic conditions will get worse (33%) than think it will get better (23%).

The findings also show employers remain uncertain about hiring, with 20% saying they ‘don’t know’ what their plans are for temporary agency workers in the next four to 12 months. However, this has fallen from 32% last month as some employers begin to firm up plans.

The survey of 600 employers also shows:

• Around a quarter (22%) of employers who hire temporary agency workers now plan to increase headcount over the next four to 12 months, compared to just 11% of employers last month.
• Just 17% of employers who hire permanent staff are planning increases in the next four to 12 months – similar to February’s findings, but down from 22% this time last year after a gradual decline.
• Short-term hiring plans are largely unchanged from last month, with 15% of respective employers planning to increase permanent staff and 16% planning to increase their temporary workforce.

Commenting on the findings, REC director of policy Tom Hadley says businesses are still pessimistic about the future of the economy. 

“However, the one-year countdown to Brexit starts tomorrow [29 March] and it’s got to a point where they can’t put off making hiring plans any longer.

“Employers are potentially turning to temps, which could bring opportunities to candidates interested in temporary work and the flexibility it affords, but is also a sign employers are affected by economic and political uncertainty. It’s less risky to bring people in to meet demand and keep them for a limited time, rather than spend the time hiring a new permanent member of staff when you don’t know what business will look like in the next year.

“Improving the mood of employers rests in the hands of the government. The announcement that EU workers who arrive in the transition period can stay is a positive step, but businesses need to know what access they’ll have to EU workers after that time period so they can plan ahead effectively.”

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