UK firms’ hiring outlook improves in Q4

British companies expect to cut jobs at a slower pace in the next three months with some sectors, notably finance, expecting to boost headcount, a survey showed on Tuesday.

A quarterly survey by recruitment firm Manpower showed a seasonally adjusted net balance of -2 percent of firms planned to cut jobs between October and December. That was an improvement from a 17-year low of -6 percent recorded in the previous two quarters.

The survey, which covered more than 2,100 employers, found that 80 percent of respondents expect no headcount change in the fourth quarter.

The survey will boost hope that Britain's employment outlook is starting to stabilise after heavy job losses over the past year.

However, employment is a lagging indicator and job losses have typically risen for a year or more after previous recessions have ended. While the pace of job-shedding appears to be easing, the number of Britons out of work is likely to continue to rise for some time. "The labour market situation is still weak, but the survey provides tentative evidence that we are now headed in a more positive direction," said Alan Clarke, UK economist at BNP Paribas.

Companies in the tranport and communications sector had the weakest hiring confidence for the coming quarter, closely followed by the hotels and restaurants sector.

Utilities and the public sector, on the other hand, remained in positive hiring territory. They were joined by the finance and business services sector which crept into positive territory for the first time in five quarters.