- Employee confidence remains strong amidst growing skills crisis
- 47% of companies are looking to increase permanent headcount in 2024
- 75% of companies looking to grow headcount are concerned about attracting and retaining skilled workers
Economists are predicting that despite worsening economic conditions the labour market is expected to remain tight, with employee confidence remaining strong in the face of an escalating skills shortage according to the latest Robert Half Jobs Confidence Index (JCI).
In 2024, economic conditions are expected to tighten slightly as high interest rates are being felt by companies due to lower consumer spending and rising costs. This is expected to lead through to a somewhat increased unemployment rate, however the labour market will remain tight as a result of the burgeoning skills crisis.
Despite this, businesses are feeling confident about their growth in 2024, as 47% of companies are looking to increase permanent headcount in 2024. Although, 75% of companies looking to grow headcount are concerned about attracting and retaining skilled workers, according to Robert Half’s 2024 Salary Guide.
Companies’ access to skilled talent to remain competitive is proving difficult due to low unemployment, high vacancies and nominal wage growth outpacing inflation. This may be exacerbated by employee confidence in job security remaining strong, a long established trend where employees perceive skills shortages as a strong indicator for job security, with a 5.5% increase in job search confidence as workers are more confident about their ability to progress.
Typically, the labour market and economic conditions are often linked, however currently the labour market is not representative of the current tougher economic conditions. This may be attributed to factors such as tightening immigration regulations, the Great Registration and the pandemic which has weakened companies ability to access skilled labour, according to Matt Weston, Senior Manager Director UK & Ireland, at Robert Half.
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