Economic confidence plummets to record levels since Covid-19 crisis

Business confidence in the economy has plummeted to record lows since the coronavirus crisis hit the UK.

According to the Recruitment & Employment Confederation’s latest JobsOutlook report, based on data collected between 1-9 April, employer confidence has dropped to a net figure of -62. That is 39 percentage points lower than in March and the lowest confidence figure recorded since the JobsOutlook survey was launched in 2016. Researchers interviewed 200 UK employers involved in hiring in collecting the data.

Employer demand for permanent staff has also fallen to a record low, the report says. Forecast demand for permanent staff in the next three months fell by 26 percentage points to a net figure of -9. “This measure has never dropped to a negative before,” an REC statement said. Demand for temporary staff is down by less, at -4.

Despite these measures being at record lows in early April, when employers think longer term, “it’s clear that a recovery is on the cards as the lockdown eases”, the REC statement said. “Businesses said that in the next four to 12 months they would be looking to hire permanent staff, with medium-term demand sitting in positive territory at +8.”

REC CEO Neil Carberry commented: “Making sure government support is effective will help businesses bridge the gap. Right now, speed and clarity matter more on the Business Interruption Loan Scheme and on how furlough works – more support on Statutory Sick Pay is also urgent. This support from government will now position recruiters to help Britain recover from Covid-19.”

JobsOutlook is produced by the REC in partnership with Savanta ComRes.

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