New research by Clydesdale Bank has shown that confidence is rising amongst employers and contractors. This fresh belief that the economy can recover comes at a time when figures suggest that employment is growing for the first time since the recession hit.
Data received from the Clydesdale Bank research showed that ninety per cent of those polled expressed optimism for the future, while one thirds of businesses believed that they could survive in these tough economic times.
Mike Williams, Clydesale Bank Executive said of the research: “This is a positive sign: where confidence exists, growth often follows. It has clearly been a challenging time for businesses, but these figures show there are signs of stability creeping into the market but it is still important to retain a grounded and cautious perspective as the market changes.”
Further evidence that things are improving comes from data compiled by the Recruitment and Employment Confederation (REC) and KPMG. According to these statistics, permanent employment grew in the month of August for the first time in nearly a year and a half. There was also a growth in the number of contractor positions for the first time in over a year. August also recorded less salary reductions than previous months.
Despite the positive connotations of this data, Bernard Brown, partner and head of business services at KPMG warned that it is “too early to speculate”.
He continued: “Given that employment costs are a substantial element of public sector spending, you would expect significant pressure on those costs going forward. This is likely to have a significant impact on the UK jobs market.”