This is according data contained in the Recruitment & Employment Confederation’s latest ‘JobsOutlook’ report, which shows confidence levels have fallen to a net figure of -34.

While significantly more businesses are looking to increase their permanent staffing than decrease it, both in the short term (net: +23) and the medium term (net: +26), these ambitions are being held back by political and economic uncertainty, with hiring confidence moving back into negative territory (net: -4).

The report coincides with findings released by IPSE (the Association of Independent Professionals and the Self-Employed), which shows freelancer confidence in the economy has fallen to historic lows both for the coming three months and the coming 12 months. Freelancers’ confidence in their own businesses has also dipped to a record low.

This quarter, freelancers have said the biggest factors holding back their businesses are the overall state of the economy (69%), Brexit (65.9%) and government tax policy relating to freelancers (63.5%).

Commenting on the JobsOutlook’s findings, REC CEO Neil Carberry said: “This month’s figures show that there is a great deal of potential in Britain’s businesses, just waiting to be unleashed. With so many firms at or close to full capacity, it’s no surprise that employers want to invest in their workforces. And it’s not just permanent staff – hiring intentions for temporary workers are positive too. Recruiters are using all their expertise to help find the right people to fill these vacancies, and three in four employers are happy with the work they’re doing.
 
“But it is uncertainty that is holding firms back. An incoming government should prioritise work by ensuring the two-way flexibility of the labour market is protected, allowing employers to recruit the staff they need while also protecting workers. This is the last set of JobsOutlook data before the General Election, and we are urging all parties to think hard about how their policies will impact companies and their workers.
 
“Concrete measures like delaying changes to IR35, introducing an affordable two-year temporary work visa, or creating a Good Recruitment Taskforce will support employers and workers to make great work happen. By putting people at the heart of its industrial strategy, a new government can help employers to boost productivity and provide good jobs for people across the country.”

Other key points from the report include:

• Three in four (75%) employers indicated they had little or no surplus capacity in their workforce. This increased to 84% in the UK’s largest organisations (250+ employees).
• Half (50%) of employers of permanent staff reported that they were concerned about shortages of candidates for hire.
• Seven in 10 (70%) employers increased pay/earnings in the year to August-October 2019. This was up from 57% a year earlier.
• Nine in 10 (90%) employers who use recruitment agencies highlighted an agency’s regional and/or sectoral expertise as an important factor when choosing their recruitment partners.

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