By Marcus Leach

Employers are predicting that they will be adding to their workforces in both the short and longer terms, the Recruitment and Employment Confederation’s (REC) June JobsOutlook shows.

This is encouraging news to add to this week’s employment figures and at a time when the short-term outlook for the jobs market remains volatile.

Despite current economic uncertainties, confidence among employers has steadied with 64 per cent expecting to increase their permanent workforce in the next three months with 65 per cent looking to do over the next 12 months. Only six per cent say they are expecting to make staff cutbacks over the coming year.

Seventy eight per cent of employers are planning to either increase or maintain the number of agency staff in the short term, with 77 per cent planning to do the same in the next 12 months.

Commenting on the latest figures, Roger Tweedy, the REC’s Director of Research, said:

“Employer confidence is at a 12 month high. The picture is one of cautious optimism as businesses assess how the UK economy will perform in the coming months.

“This comes at the same time as consumer confidence has taken a significant upward turn after almost a year of steady decline. We expect this to result in increased fluidity within the jobs market.

“Though the May Report on Jobs showed a deceleration in the rate of growth, it is important to note that there was still an increase in actual placements in most sectors. The JobsOutlook data confirms a more upbeat prognosis for the mid and longer term although the ability of the private sector to absorb public sector cuts remains in the balance.”

JobsOutlook is based on a monthly survey of employers with results based on a sample of 600 on a three month rolling basis.

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