Finally, good news for jobseekers

According to the Recruitment and Employment Confederation (REC), 78% of private sector firms plan to either increase their use of temporary agency staff over the next three months, or maintain current levels. Meanwhile, 77% say that they will increase or maintain their dependency on staff from recruitment agencies over the coming 12 months.

The organisation’s JobsOutlook report for June also reveals that 64% of employers surveyed have indicated that they are planning to increase their permanent workforces over the quarter.

A ‘picture of cautious optimism’ for workers

REC’s Director of Research, Roger Tweedy, 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.”

These upbeat findings, based on a survey of 600 UK employers, are in stark contrast to the REC’s own research announced at the start of June. Then, the report by the REC and accounting firm KPMG indicated a dramatic slowdown in the number of new jobs being created nationwide. It was revealed that the number of jobs being created by companies in the private sector had reached its slowest pace for seven months.

‘A more upbeat prognosis’

Mr Tweedy went on to say that: “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.”

Ongoing cuts in public services due to the government’s reigning in of public spending are widely expected to increase pressure on the fragile jobs market. The government is hoping that the private sector can find a home for those who have lost their jobs in the public sector, but this is of course dependent on significant growth in the economy.

Research by the Confederation of British Industry (CBI) has also revealed optimistic results, showing that around a third of employers are planning to launch major recruitment drives over the next six months.

CBI’s Director-General, John Cridland, commented: “We remain confident that private sector growth can more than compensate for job losses in the public sector.”