UK employers are their most concerned about the economy since the 2016 Brexit referendum.

According to a survey carried out by the Recruitment and Employment Confederation, despite their fears, employers in Britain are planning to hire additional staff, indicating the somewhat surprising strength of the jobs market.

An increasing number of businesses were subdued about the outlook for jobs and investment than were optimistic for just the second time since the Recruitment and Employment Confederation surveys began three years ago.

However, as per a Reuters report, firms planned to increase staff numbers, particularly for temporary workers, perhaps showing their hesitancy in making longer-term investment commitments.

Neil Carberry, chief executive of the Recruitment and Employment Confederation stated: “The more positive figures on hiring for temporary workers suggest that many businesses are turning to agency work to help them navigate the unpredictability they currently face.

“This might be driven by waiting to see whether permanent hiring is justified, or by using additional labour to meet demand rather than making big capital investments.”

The UK economy decelerated in the lead-up to the original Brexit deadline of 29 March, along with weaker growth in the majority of the rest of the world. However, job creation has continued to advance in Britain, driving the rate of unemployment down to its lowest point since 1975.

The REC represents over 3,500 recruitment businesses and more than 10,500 individual recruiters, and members are polled each month. The REC’s ‘Jobs Outlook’ for Q1 highlighted that Brexit-fuelled uncertainty was not just discouraging investment, but also dissuading companies from committing to permanent employment contracts, reports The Times.

The survey, carried out between 2 January and 22 March this year, found that 3% of firms were positive about employing agency staff, a steep rise from -7% in Q4 2018. Meanwhile, employers’ confidence in the economy fell 3% to -31%, the lowest point in close to three years.