Confidence levels had been improving since November 2019, when the winter election provided political clarity. But the impact of the pandemic caused confidence to drop from net -1 to net -23.

However, firms are still taking on staff. While demand for permanent staff has fallen, it remains positive (a net figure of +17) both in the short and medium term. Indeed, short-term demand is higher than average for technology workers and drivers.

Similarly, demand for temporary agency workers jumped by 15% between February and March, as many employers looked to flexible workers. These people are vital to the UK’s labour force in a crisis. The REC will continue to work with government to ensure that agency staff are not left without support in the lockdown.

Josh Prentice, REC Research Officer