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Employers relaxed at coalition government prospect

The prospect of another coalition government after 7 May would have no impact on almost two-thirds (64%) of employers’ confidence to make decisions about investment and hiring, according to the Recruitment and Employment Confederation (REC).

The REC's latest JobsOutlook survey found only 4% thought a coalition would have a negative impact on their hiring plans. Just under a third (32%) were undecided.

REC chief executive Kevin Green said: “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.”

Other key findings include:

  • The proportion with no spare workforce capacity increased from 39% in March to 45% this month. A further 51% reported having only ‘a little capacity’ to take on more work with current staffing levels
  • 74% plan to hire more permanent employees in the next three months
  • 38% say they will increase use of agency workers in the next three months, and 45% over the next four to 12 months 

Green said: “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." 

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