EU Debate Stifles Permanent Staff Recruitment

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Source:   —  April 08, 2016, at 4:41 AM

Some employers may be taking a "wait and look approach" as growth in the no of people finding permanent work slows.

EU Debate Stifles Permanent Staff Recruitment

The no of people in the UK finding work in permanent, safe work roles has grown at its slowest rate in six months.

That’s according to a jobs report published today by research firm Markit, on behalf of the Recruitment & Employment Confederation (REC) and accountancy firm KPMG.

The N of England had the highest rate of new permanent work hires for the mo of March, while growth was slowest in London.

Temporary and contract staff, on the other hand, found work at a faster pace than has been seen for four months, suggesting the market may be leaning more towards ad-hoc employment as the summer approaches.

Addressing the statistics, Tom Hadley of the REC said the uncertainty around the EU referendum may be stifling permanent recruitment.

"Global economic headwinds plus uncertainty around a possible Brexit create it likely that slower growth in permanent hiring will stay over the following few months as employers get a wait-and-see approach,” he said.

"In contrast, temporary hiring is on the up as businesses seek to meet increasing demand while retaining the skill to react quickly to any threats that might be around the corner.”

The jobs market also saw powerful growth in starting salaries and hourly rates of pay, which the REC has linked to the introduction of the National Living Wage.

But there show up to be problems with both the no of vacancies available to fill and with finding candidates to fill them.

The data shown in the report indicates that demand for staff in both permanent and temporary roles slowed further in March, with the smallest expand in vacancies in thirty-third months.

And there was a sharp drop in the availability of employees to fill permanent roles.

The no of candidates for temporary or contract work roles also declined, but at a much more sedate pace – the slowest seen in two-and-a-half years.

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