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REC JobsOutlook: 8 out of 10 employers plan to create permanent jobs

In addition to this, more than half of employers (51%) are planning to take on more agency staff in the next three months. The monthly tracking survey also reveals that the proportion of employers saying they need new staff to meet increased demand has risen from a quarter at the turn of the year (25%) to over a third (34%).

More than six in ten employers (61%) report they have not reduced the cost of their workforce at all in the last 12 months, either via redundancies, reduced pay or hours or headcount freezes, which suggests there is a relative period of business stability in UK plc.

REC Head of Policy Kate Shoesmith said, “Business confidence continues to grow and it is excellent news to see employers planning to hire more people on permanent contracts for the rest of 2014.

“Despite the skills shortages taking hold of many sectors, it is testament to the hard work of recruiters that nearly 90% of employers are satisfied with the quality of the candidates being put forward by their agency.”

We asked employers about their plans for permanent headcounts in both the short and medium term:

•       Eight out of ten employers (83%) plan to increase permanent hiring in the next three months, down one point on last month.

•       Eight out of ten employers (81%) plan to increase their permanent hiring in the next 4-12 months, up one on last month.

When asked about their plans for future use of agency workers in both the short and medium term:

•       Half of all employers (52%) plan to increase use of agency worker in the next three months, up two points on last month.

•       More than four out of ten (48%) plan to increase their use of agency workers in the next 4-12 months, up four points on last month.

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