UK firms appoint staff at slowest rate in three years
Companies hired permanent workers at the slowest rate in over three years in August, according to a new survey, in a sign that the jobs boom in Britain is slowing.
Read more: BoE’s Mark Carney says UK now better-prepared for no-deal Brexit
August also saw the weakest increase in total job vacancies in over six years, the Recruitment and Employment Confederation (REC) and professional services firm KPMG revealed in their latest report.
Unemployment in Britain remains remarkably low, however, despite employers being racked by Brexit uncertainty. Just 3.9 per cent of the working age population are without a job, a figure not seen for 45 years.
Some economists have said businesses are reluctant to invest and so are hiring workers who can be laid off in a downturn.
“Many firms have lacked the confidence to put funding toward training, technology, and new machinery, which has in turn meant firms need to hire more workers to lift output,” Tej Parikh, the chief economist at the Institute of Directors, said in April.
Yet there are signs that Brexit uncertainty and a global economic slowdown could be catching up with the jobs market.
Today’s KPMG and REC jobs report said: “An uncertain outlook also weighed on candidate numbers, as many people were reluctant to seek new roles in the current climate.”
Permanent job vacancies in the private sector rose at the slowest rate since January 2012, while the growth in demand for temporary staff eased to a 79-month low.
KPMG vice chair James Stewart said that with investment contracting, “businesses desperately need clarity on Brexit outcomes in order to rebuild confidence in the jobs market and be able to make more informed decisions on their long-term hiring plans”.
Neil Carberry, chief executive of the REC, said: “Britain’s record on jobs is world-leading. It’s a key part of our economic success, with recruiters at the forefront of it.”
Read more: UK closer to recession after stagnant services data
“But all this rests on business confidence,” he said, “and it’s clear that things are getting harder.”