Employers confident prospect of another coalition government won’t impact their hiring decisions

64 percent of employers say the prospect of another coalition government would have no impact on their decisions about investment and hiring, according to the latest JobsOutlook survey by the Recruitment and Employment Confederation (REC).

200 organisations took part in the survey, which asked people with hiring responsibilities what impact another coalition government would have on their plans for job creation. One in 25 (4%) thought that a situation where no one party wins an outright majority in Parliament would impact negatively on their hiring plans, and 32 percent were undecided.

REC chief executive Kevin Green says:

“If you think back to 2010 there was a lot of uncertainty about the impact a coalition government might have on the stability of our nation and our economy. After five years’ experience of a coalition our survey shows that employers are relatively sanguine about the possibility of another multi-party government after May with the vast majority indicating a result that fails to deliver one clear winner won’t disrupt their plans for job creation.

“The biggest challenge, and a real constraint on continued growth in our economy, is the lack of candidates with the right skills to fill the vacancies employers have to offer. Employment is at a record high, and yet businesses say they will need more staff if demand for their products or services increases. It’s good news for jobseekers and people looking to move roles, but it’s a headache for bosses as candidates become harder and harder to find.

“Whichever party or parties form the next government must take a sensible, evidence-based approach to immigration policy which doesn’t hamper employers’ abilities to build their businesses and create jobs and wealth.”

The key findings from the regular monthly survey:
• The proportion with no spare workforce capacity increased from 39 percent in March to 45 percent. A further 51 percent reported having only ‘a little capacity’ to take on more work with current staffing levels.
• 74 per cent plan to hire more permanent employees in the next three months.
• 81 per cent say they will increase permanent headcount over the next 4-12 months
• 45 per cent say they will take on more agency workers over the next 4-12 months while a further 54 per cent say they will maintain current numbers.
• 38 per cent plan to increase use of agency workers in the next 3 months, with a further 58 per cent maintaining current headcount.

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