Employer confidence has started to pick up, according to the latest Recruitment and Employment Confederation (REC) / Whitestone Insight JobsOutlook survey.
The survey showed that confidence in the UK economy improved by 15 percentage points since last quarter, reaching net -20 for the period from April to June 2025.
This followed a dip in Spring but continued a steady trend upwards over the last two years.
Confidence in making investment and hiring decisions rose by 12 percentage points since April, now at net +3 for the three months to June.
This shift to positive figures was reflected in increased hiring intentions across all types of roles, with London seeing particularly strong activity.
Neil Carberry, CEO at 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.
“Getting investment plans unblocked will turn firms from delayers of recruitment to hopeful hirers.”
Carberry added: “The focus now turns to the government. The upcoming Budget must strike a better balance between supporting business growth and addressing the public finances, something that was missing last year.
“That round of increased employment costs stalled a budding recovery in employer sentiment.
“Encouragingly, breakthroughs in international trade, stable inflation and a year of political stability are helping.”
He said: “The recently announced roadmap for the Employment Rights Bill is another positive step in terms of offering some certainty, but genuine, ongoing consultation with business ahead of the Bill’s Royal Assent and plans for the Budget is essential to sustain momentum.”