Chancellor should use Budget to boost job market, says REC

The 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.