Employers Boost Short-Term Job Plans as London and Mid-Sized Firms Lead the Way
The UK job market is showing fresh signs of life. According to the latest JobsOutlook report from the Recruitment and Employment Confederation (REC) and Whitestone Insight, hiring sentiment across both permanent and temporary roles is on the rise — a welcome boost for job seekers bracing for a competitive summer.
Permanent Job Confidence Grows
In a key sign of employer optimism, short-term expectations for permanent hiring rose to net: +9, a three-point bump. Medium-term expectations followed suit, also hitting net: +9. Meanwhile, temporary hiring sentiment climbed back into positive territory, reaching net: +5 in the short term and surging to net: +14 for the medium term.
These trends offer a glimmer of hope for school leavers, graduates, and seasonal workers hoping to secure roles in the coming months.
Economic Jitters Still Loom Large
However, a full recovery is far from guaranteed. Confidence in the UK’s economic outlook plummeted to net: -35, and employers’ faith in their own investment and hiring decisions dipped to net: -9. Inflation, rising National Insurance costs, and political uncertainty — especially surrounding the Employment Rights Bill — continue to cast a long shadow.
“Firms clearly see potential, but they also see risk,” said Kate Shoesmith, Deputy CEO of REC. “We need clear, long-term strategies from government to unlock sustained growth.”
London Ignites Hiring Surge
London is leading the charge back to confidence. The capital saw its short-term permanent hiring outlook leap from net: +3 to a robust net: +18, while medium-term sentiment hit net: +19. Temporary hiring in London is also on the upswing, climbing from negative territory to net: +13 short-term and net: +10 medium-term.
"If London’s optimism holds, it could signal the early stages of a wider recovery," Shoesmith added.
Mid-Sized Firms Fuel Optimism
Companies with 50–249 staff have emerged as hiring heroes, posting the strongest gains in both temp and perm hiring confidence. Their enthusiasm could be pivotal in stabilising the national employment picture.
The Road Ahead: Cautious Confidence
The UK hiring recovery is underway—but fragile. Employers are showing willingness to expand their workforce, yet that willingness hinges on policy clarity, inflation control, and long-term investment incentives.
With the upcoming Spending Review looming large, the government’s next steps will determine whether this recovery is temporary — or the start of a sustained jobs boom.
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