Staff shortages hit UK jobs market as employers bemoan Brexit effect

UK employers are finding it more and more difficult to recruit staff as candidate availability struggles to keep up with demand, new research showed on Tuesday, though this is driving up wages.

The report, carried out by the Recruitment & Employment Confederation in association with Markit, indicated that staff appointments had increased to its highest level in over two years.

Official employment numbers released by the Office of National Statistics last month showed the UK unemployment rate had shrunk to the lowest since 1975, though this had so far seen little boost to wages.

While the availability of permanent staff fell by less than it has done in previous months, the rate of reduction for temporary workers declined at its fastest speed in over 18 months, REC's research found.

According to the survey, the UK’s decision to leave the European Union has led to the departure of some EU citizens, making it more difficult to fill certain jobs.

THE BREXIT EFFECT

REC chief executive Kevin Green said the falling availability was showing effects across several sectors.

Green said: “It's clear that employers are having to work even harder to fill jobs as vacancies rise and candidate availability shrinks. UK employment remains at an all-time high and looks set to keep improving.

"The parts of the economy most reliant on European workers are under even more pressure as many EU workers return home. Employers are not just struggling to hire the brightest and the best but also people to fill roles such as chefs, drivers and warehouse workers,” he added.

The survey, which was compiled data from a variety of recruitment consultancies, also showed that the City job market was also still feeling the after-effects of last year’s referendum.

“London in particular is feeling the Brexit effect,” Green added.

“Hiring is still growing but at a much slower rate compared with every other region of the UK. Financial services, a crucial part of the London labour market, are not hiring in their usual quantity as the uncertainty caused by Brexit makes them hesitant.”