Hiring plans among UK companies have increased in October despite a drop in confidence in the business sector ahead of tomorrow’s Budget.
In the latest Lloyds Bank Business Barometer survey of 1,200 companies, 54% of employers said they expect to increase their workforce in the next twelve months. This is up from the 53% that said the same thing last month.
Employers are still predicting a reduction in their workforce by one-sixth (17%) of employers, the same as last month.
The report also revealed that overall business confidence fell to its lowest level for three months, dropping three percentage points to 44 %. Nevertheless, the overall business confidence is still higher than the long-term average of 29%.
In the UK, the confidence levels increased across the board, but the North East, London, and North West recorded the highest levels.
Hann-Ju Hu, senior economist at Lloyds Bank Corporate and Institutional Banking said: “While business sentiment remained above historic levels, overall confidence in the business sector declined slightly in October.
The increase in hiring intentions indicates that more employers are looking to expand their workforce.
The survey was conducted between 1 and 15 Oct. It found that the expectation of pay growth is still higher than it was pre-pandemic.
Companies predicted that average wage increases would be slightly lower in the coming 12 months. Fewer than one third (32%) expected a rise of more than 3% – the second consecutive drop and the lowest since the month of July 2024.
The proportion of people expecting an average wage increase of at least 4% has also fallen to 17%. However, the expectations for wages are still higher than they were before the pandemic.
Ho said: “Businesses will continue to look at managing these considerations as they enter the final quarter of the year.”
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