UK employers remain cautious about their hiring plans in the last months of the year with more than eight out of 10 intending to keep staffing levels the same. The growing caution is reflected in overall hiring plans being the weakest in nearly 10 years (since Q1 1999) and the weakest Q4 result since 1992.

Employers have faced difficult times since the credit crunch, rising fuel prices and wider economic and confidence worries really took effect last year. Automotive industry had it’s worst August for new registrations since 1966. Automotive production output is being scaled back. This uncertainty is being reflected by new recruitment plans being put on hold and with slightly more employers now looking to reduce their staffing numbers than add to them.

Many employers anticipated these more challenging conditions and have taken steps to ensure their businesses are as robust as possible. Employers have also focused on training and improving workforce productivity. Even as we see redundancies in the labour market, the majority of employers want to avoid reducing their workforce. This should allow them to benefit from any pick-up in the economy.

It is not clear how long the current business climate will last. In the current conditions, it is not surprising that many businesses are not predicting any increase in hiring and are using temporary and contract workers to meet short-term demands.

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