Business

Brexit uncertainty continues to weigh on staff hiring decisions, study suggests

UK employment agencies placed fewer workers in permanent jobs last month
UK employment agencies placed fewer workers in permanent jobs last month UK employment agencies placed fewer workers in permanent jobs last month

UK employment agencies placed fewer workers in permanent jobs last month, showing continued uncertainty over the business outlook, a new study suggests.

In contrast, temporary placements increased, while the general shortage of candidates continued to push up pay rates, said the Recruitment and Employment Confederation (REC).

Its survey of 400 recruitment agencies found that Brexit-related uncertainty continued to impact on hiring decisions.

REC chief executive Neil Carberry said the report shows the "continued strength, agility and flexibility of the UK labour market".

"In uncertain times, employers are turning to temporary work to support their business and offer people opportunity while the long-term economic picture is unclear.

"There are signs that the jobs market is gently weakening for permanent roles, despite ongoing issues of skills and candidate shortages.

"This too is likely to be associated with uncertainty about the future path of our economy."

James Stewart of KPMG, which helped with the study, said: "This report shows how the UK jobs market has seized up, with both employers and candidates waiting to see which direction Brexit is going to go in.

"Overall employers have hired fewer permanent staff in three of the past four months and most of the firms we're speaking to say that uncertainty around Brexit is to blame.

"A subdued public sector is also contributing to the wider picture."