The call comes after the latest REC ‘JobsOutlook’ revealed the dampening effects of Brexit and general election uncertainty on hiring.

In the three months covering September to November, the report shows that hiring confidence fell to its lowest level since the survey began in 2016, with hiring and investment decisions falling to a net -8 as employers held back on their hiring. 

Demand for short-term temporary workers was particularly badly hit falling by -16%. In contrast demand for permanent staff remained relatively strong at +21 for short-term and +24% for medium-term permanent staff.

Despite the indications that the combination of Brexit and the upcoming general election led employers to put off hiring decisions, there are no indications that this dented the overall picture of the UK labour market as one in which many employers face significant challenges in finding the staff they need.

According to the survey, produced by the REC in partnership with Savanta ComRes, more than half (52%) of employers of permanent staff said they were worried about the availability of workers for permanent roles. Construction was the skills area causing most concern (57%).

Hiring in the public sector was particularly robust, with a notable year-on-year rise in the proportion of public sector bodies that had increased staffing levels in the previous year, from 42% to 69%.

Commenting on the report, Carberry said: “Many employers have been sitting on their hands for the past few months, putting off hiring until the outlook was clearer. Now that some of the fog has lifted, both business and the new government can put their plans into action. 

“What we need to see from the government are policies that will help make great work happen – the first priority will be to secure our managed exit from the EU. This is also not a time to be making sweeping and incomplete changes to how we treat flexible workers – the government should bring forward the review of IR35 it promised on the campaign trail, and delay implementation.

“Skills and labour shortages remain a huge concern for employers. Three quarters of firms are working at or near full capacity, and more than half are worried about finding enough candidates to fill permanent roles. These concerns cross a wide range of sectors including construction, engineering, education and healthcare. We need reforms to skills systems across the UK – including to the failing Apprenticeship Levy – but we also need an immigration system that is based on the needs of the economy at all levels.”

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