The Recruitment and Employment Confederation (REC) sayst employers continue to be wary about hiring new staff, as businesses were left wanting more from the Spring Statement.
Chancellor Rachel Reeves' statement included multi-billion pound spending commitments on defence and construction, with a promise to "kickstart economic growth".
However, a recent survey of over 700 º£½ÇÊÓƵ employers indicates that businesses are still hesitant about recruiting new employees, as reported by .
The survey was carried out prior to Reeves delivering her Spring Statement, but a note from REC stated: "Businesses hoped for more from this week's Spring Statement to help them drive growth."
The research revealed a "very gentle trend of improvements" in business confidence, but both measures studied in the report – confidence in hiring and confidence in the º£½ÇÊÓƵ economy – remained negative.
Medium-sized and larger employers displayed more optimism than small businesses, with confidence among firms with up to 50 employees barely shifting, according to the survey.
The last REC survey in January suggested that the increase in employers' national insurance contributions had negatively impacted hiring intentions.
Neil Carberry, the REC's chief executive, confirmed that this remained the case in their latest survey.
"We have seen business sentiment begin to improve this Spring, though the impact of the national insurance hike hangs over this like a fog," he said.
The upcoming adjustments to employers' national insurance contributions, set to take effect from next week, will result in companies facing a heightened tax rate of 15% on earnings exceeding a £5,000 threshold.
He called on Reeves to implement a series of measures favourable to businesses to bolster the employment sector.
"Too often, the government talks a good game but day-to-day action paints business as the problem rather than the solution," he remarked.
Carberry pressed the Labour government to overhaul its prominent Employment Rights Bill and commit to "commitment to genuine partnership" that extends beyond merely arranging meetings.
"British business wants this government to succeed – but they need to support us to help them do it."
Employers in the capital have a pessimistic outlook on recruitment prospects in the near and medium future, reflecting subdued expectations among City firms for significant economic expansion this year.
"[Overall] optimism is tempered only a little by London, often a bellwether for the economy," Carberry observed.
