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News from the recruitment sector and the post-Brexit job market

Posted by: Daniel Robinson
06/09/2016

Jobseekers and graduates, employees and employers; we are all holding our breath waiting for the tangible consequences of the Brexit referendum.

The main news comes from Sunday’s G20 summit in Hangzhou, China, where the not so new Prime Minister Theresa May spoke for the first time about the Brexit, with the focus on the two main promises made by the Leave Campaign; immigration and the NHS.

May has refused to guarantee the long-term status of EU citizens living in the UK. May reiterated that she would not guarantee the rights of EU citizens until the other 27 countries did the same for Britons living abroad (around 1.2m Britons are estimated to live across the EU).
Meanwhile, a survey of 800 UK firms employing EU staff released by the British Chamber of Commerce yesterday, found that one in ten businesses said staff intend to leave the UK, with 5% reporting that EU staff have already quit following the referendum.

For the recruitment sector, the latest survey from the Association of Professional Staffing Companies (APSCo) shows that professional hiring has remained sturdy despite the referendum result, but salaries on offer are no longer so favourable.
The APSCo study found that permanent vacancies inched up by 0.2% in July compared with the year before, although contract vacancies dipped by 2%.
However, there is some good news for job hunters; the number of contract roles on offer for finance and accounting jobs has leapt up by 21%, as employers struggle to gauge their long-term staffing needs post-Brexit, as found by the Apsco report.

"It seems that an increasingly flexible workforce is being utilised to keep the wheels in motion until there is greater certainty around what the UK's future relationship with the EU will look like," said Ann Swain, chief executive of APSCo. "Until then, the professional recruitment sector will continue to provide talent to firms' immediate and short-term needs."

But APSCO found that it’s not such good news for people looking for a salary increase, with salaries slipping by 0.8% overall. Although financial services once again bucked the trend with salaries increasing by 3.6%.
Separate research by jobs search engine Adzuna, found that the average salary on offer in the pool of jobs it studied had dropped 2.4% in July compared with the year before, a difference of £33,505 to £32,688.

"Jobseekers might not be jumping for joy," said Doug Monro, co-founder of Adzuna. "After the shock of Brexit, a new Prime Minister and lower interest rates, rising inflation has now entered the ring. Not only are advertised salaries falling, but inflation is hitting workers hardest and where it really hurts – their wages."

 

 

 

 

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