A survey of over 500 employers suggested increased optimism over investment and hiring decisions, but there is still a long way to go
The Recruitment and Employment Confederation (REC) has revealed that while employers’ confidence in the UK economy has seen a rebound this year, it still remains weak.
A survey of more than 500 employers indicated a rise in optimism regarding investment and hiring decisions. However, REC said it was concerned about whether the recent tax changes announced in the Budget might dampen this positive trend.
Neil Carberry, the REC’s Chief Executive, commented: “The strong growth in employer confidence about hiring and investing in their own firms slowed a little as firms awaited a Budget they knew would be tough. The scale of the changes to Employers National Insurance – in particular, the decision to increase the tax far more for lower earners – will be a headwind for hiring confidence from here on in.”
Carberry added: “But the economy and the labour market are subject to far greater trends than government action, and the gentle recovery of employer views on the wider economy will be what ultimately drives demand in 2025. London appears to be leading the way on this. Confidence trends this year suggest the labour market will remain resilient, despite ongoing economic challenges in 2025.”
In response, a Treasury spokesperson stated: “Increased employer confidence matters as we set about delivering the Budget that fixed the foundations of the economy. Our number one mission is to grow the economy, and working with business is the best way to bring good jobs and higher wages to people around the country.”
