Permanent job hires rebound after Brexit vote
Permanent appointments rose in August following a slowdown in the lead up to the Brexit vote, according to a report by Markit/Recruitment and Employment Confederation (REC).
For the first time in three months, the data showed a rise in the volume of permanent staff placements in August, following a drop in the two months leading up to the Brexit vote.
The report draws on original survey data provided by recruitment consultancies.
Chief executive of REC Kevin Green said: “The UK jobs market returned to pre-referendum patterns in August as the initial shock of the vote result subsided. Permanent hiring returned to growth as employers confirmed appointments that had been on hold or delayed in June and July.”
This rise in permanent placements was recorded across each of the monitored regions, apart from London where there was merely a slowdown in the pace of decline.
Nursing and Medical care remained the most sought-after category for permanent staff ahead of Engineering. Construction was the only category which faced a decline in demand.
The strongest growth of vacancies was recorded for private sector temporary workers and public sector permanent staff was the only category to see a decline.
Starting salaries for permanent jobs continued to rise at a “solid and faster” rate than in July, with panellists citing skill shortages and greater numbers of senior-level placements.
Short term staff billings also rose during the month after a 10 month low in July, which panellists attribute to strong client activity levels. The North of England recorded the highest rise in these jobs.
The growth in demand was broad-based across all monitored categories of temporary/contract staff with the fastest rise being seen by Hotel & Catering workers, followed by Engineering staff.
The supply of candidates to fill vacancies however remained an issue with sharper falls in the availability of both permanent and temporary staff.
According to Green, it’s still too early to tell what impact the Brexit vote will have on the jobs market. The fact that vacancy growth has softened could suggest that hiring could be volatile over the coming months.
"The priority now is to shore up business confidence. Much of this depends on progress the government can make in its difficult task of ensuring that UK businesses have the ability to trade with their neighbours in the EU. Developing an immigration policy which will allow employers to access enough candidates for the jobs available is vital,” said Green.