Post-Brexit, Businesses are Opting to Hire Short-Term Workers

Permanent placements have fallen at sharpest rate since recession with small firms wary of the economic implications of Brexit

Post-Brexit, Businesses are Opting to Hire Short-Term Workers

UK businesses are opting to employ only short-term workers with permanent hiring put on hold following Britain’s vote to leave the EU, a report from IHS Markit has claimed.

A survey of 400 UK recruitment and employment firms revealed that 38% placed fewer professionals in permanent positions in July, an increase on 32% in June – representing the sharpest fall in permanent placements since May 2009.

IHS Markit has suggested that the economic uncertainty caused by Brexit resut is the ‘root case’ of the recruitment freeze by some companies, with businesses uncertain about the UK’s economic future.

Despite the negative trend, starting salaries for all staff increased in July with the nursing and medical care sector the most in-demand industry for permanent professionals.

Kevin Green, chief executive of Recruitment and Employment Confederation (REC), said:

“The truth is we don’t know what long term consequences the referendum result will have on UK jobs. With the political situation becoming more stable and the Bank of England making sensible decisions, we may well see confidence return to the jobs market more quickly than anticipated.

“Demand for staff remains strong with vacancies continuing to rise, but the sharp fall in placements suggests that businesses are highly cautious about committing to new hires.”

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