Marvin OnumonuThe Recruitment and Employment Confederation (REC) has urged the Chancellor to use the Autumn Budget to support the job market, as new data shows employer confidence is improving.
The latest Jobs Outlook Report from the REC and Whitestone Insight found employer confidence in hiring and investment rose by four points between April and August 2025, ending the quarter at net +7.
Confidence in the wider UK economy stayed negative at -19, a slight improvement from -20 in the previous quarter.
Data found that business confidence was firming as 2025 draws to a close, with more positive hiring intentions.
Permanent hiring outlook for the short term was up by six percentage points to net +18% for June to August compared to April to June, and medium-term permanent hiring intent also increased by six points to +20%.
Temporary hiring needs rose by two points to net +14% for the short term, and medium-term temporary and contract demand grew from net +13% in June to +21% in August.
Neil Carberry, CEO at the REC, said: “The story of the last year has been businesses getting more confident in themselves, but holding off on investment and hiring because of wider economic, policy and technology concerns.
“That may be starting to change as last year’s Budget fades from view, some sectors like construction bounce back and interest rates are stable.
“But it just serves to triple underline that the impact on businesses of this autumn’s Budget decisions needs to be the opposite of last year – only business confidence can drive growth, so the Budget must underpin it.”
Carberry added: “The last Budget unsettled employers, with higher National Insurance combining with a 25% rise in the minimum wage in the past three years.
“On top of that, firms are worried about red tape in the Employment Rights Bill, including the risk of being tied up in tribunal cases for years after dismissing someone early in their tenure.
“Today’s report shows the potential rewards if government makes it easier for firms to invest and create jobs.
“And growth, which creates better tax receipts, is also the only way out of the fiscal straitjacket the Treasury finds itself in.”
