Employers are feeling more optimistic about the future than at any time in over two years, according to a new survey of businesses.
The Recruitment and Employment Confederation JobsOutlook survey, which questioned 703 employers, shows that confidence in the UK economy rose by 15 percentage points compared with the previous quarter. This improvement suggests that a tentative turnaround could be underway, the organisation claimed.
Confidence in making investment and hiring decisions also increased for the three months to June 2025. This is the first time in several quarters that this measure has returned to positive territory, and REC says this is feeding through to stronger hiring plans across all types of jobs.
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The report found that the short-term outlook for permanent hiring rose to net +13, while the medium-term outlook (covering the next four to 12 months) also improved, reaching net +15. Temporary hiring saw similar gains, with short-term intentions rising to net +12.
London was the most optimistic region, with the capital showing strong hiring intentions for both permanent and temporary roles. Large businesses, with more than 250 employees, were also particularly upbeat about future hiring.
The REC says the figures back up signs of improving demand seen in other recent labour market data, including its Report on Jobs and Labour Market Tracker.
Neil Carberry, chief executive of the REC, said: “Confidence is the key to growth in 2025, so it is good that businesses are beginning to shake off some concerns on investment and hiring that they have carried for almost three years. Despite a spring battering from the NICs rise, inflation and other policy costs, there is hope that businesses can step up their trading in the second half of the year.”
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Carberry added that the upcoming Budget would be crucial for sustaining momentum, urging the government to balance business growth with public finances and continue engaging with companies on the planned Employment Rights Bill.
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