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Hiring of Permanent staff falls at sharpest rate in over seven years.
The jobs survey by Markit has reported that “The UK jobs market suffered a dramatic freefall in July following BREXIT, with permanent hiring dropping to levels not seen since the recession of 2009.
Commenting on the latest survey results, REC chief executive Kevin Green says:
“The UK jobs market suffered a dramatic freefall in July, with permanent hiring dropping to levels not seen since the recession of 2009. Demand for staff remains strong with vacancies continuing to rise, but the sharp fall in placements suggests that businesses are highly cautious about committing to new hires. Economic turbulence following the vote to leave the EU is undoubtedly the root cause.
“The record-high employment rate and ongoing skill shortages have made it difficult for employers to find suitable candidates for the roles available in the past, and this remains the case. We’re now seeing the added problem of individuals deciding to stay put rather than change jobs in the current environment.
“While there are worrying signs, it’s important we don’t jump to conclusions from one month’s data. The truth is we don’t know what long term consequences the referendum result will have on UK jobs; with the political situation becoming more stable and the Bank of England making sensible decisions, we may well see confidence return to the jobs market more quickly than anticipated.”
Key points from the July survey:
Marked drop in permanent appointments amid heightened uncertainty
Permanent salaries increase at weakest rate in over three years
Engineers most in demand:
Permanent: Architects and Technicians, Design Engineers
Contract: Electrical Engineers
The Report on Jobs is a monthly publication produced by Markit and sponsored by the REC (Recruitment and Employment Confederation) and KPMG LLP.