According to recent data released by the ONS, our delayed departure from the European Union – and subsequent doubt over the process – has impacted the UK’s recruiting plans as well as employment statistics.
Lack of permanent vacancies
KPMG & Recruitment and Employment Confederation (REC) have stated that permanent staff appointments have fallen consistently over the past 8 months according to their UK Jobs Data Report – the longest period since the Global Financial Crisis.
Due to unpredictability on the impending financial impact of Brexit, employers are cancelling, or at least delaying, decisions on investment & employment, creating the lowest rate of overall job vacancies since January 2012.
In addition to a lack of opportunities, the precariousness of our political limbo has left current staff less inclined towards new openings. There has been a significant decrease in the amount of candidates (both permanent & temporary applicants) and a more intense focus on rate of pay.
It was revealed in September however, that demand for private sector employees was actually increasing due to the amount of temporary vacancies. Meanwhile, demand for staff in the public sector continued to weaken.
By industry, IT & Hospitality are seeing the highest demand for permanent employment, while Construction & Retail are experiencing a significant decrease in permanent vacancies.
Overall, the unemployment rate has increased by 0.1% over the summer, and the employment rate has fallen from 76.1% to 75.9%, as employers understandably lack confidence in our economy when questioning the future of their business.
What to expect
Despite a Brexit deal being agreed last month, we can only expect more clarity on the upcoming financial repercussions once we know for certain what the deal entails. While a no-deal Brexit seems to be off the cards for now, there is still a chance Brexit may not happen at all, with the prospect of another referendum being a possibility.
Along with Recruitment, we have already detailed the potential effects of Brexit on the Manufacturing industry.
For those who are worried about the risk of unemployment following the Brexit results, it might be also worth considering other ways to protect your monthly wages, for example, through income protection insurance.
We hope to know more after the extension (ending on 31st January 2020) however, the general election on 12th December could alter the proceedings yet again.
For advice on handling your business’ finances throughout this perplexing period, contact Peak Cashflow today.