EU caution puts squeeze on job hiring

The uncertainty around the outcome of the EU referendum is forcing UK businesses to put the brakes on job hiring.

According to a new report from research group Markit on behalf of the Recruitment & Employment Confederation and accountancy group KPMG, the number of full-time placements has risen at the slowest rate in six months. Temporary placements however have notched up their fastest growth in four months.

Starting salaries for people placed in permanent jobs continued to rise in March, with hourly rates of pay for temporary and contract staff increasing at the sharpest pace in three months.

Markit said the strongest growth in permanent placements came in the North with the slowest rise being seen in London. Most in demand were nursing and medical care workers with the weakest growth for engineering employees.

REC director of policy Tom Hadley said: “While we expect jobs growth to continue overall, we are now seeing the effects of current uncertainty in the marketplace on UK employment. Global economic headwinds plus uncertainty around a possible Brexit make it likely that slower growth in permanent hiring will remain over the next few months as employers take a wait-and-see approach.”

On temporary placings Hadley said it had improved as businesses sought to meet increasing demand while retaining the “ability to react quickly to any threats that might be around the corner”.

He added: “The continuing increase in both starting salaries for permanent positions and hourly rate for temporary employment is a trend likely linked to the introduction of the National Living Wage.”