Brexit dents UK job creation

Employers’ confidence in the UK’S economic outlook has plummeted due to sustained uncertainty caused by Brexit, new research suggests.

Data released today by the Recruitment and Employment Confederation (REC) shows that business confidence in the prospects for the British economy fell by six percentage points to a net score of -20.

This represents the lowest score on record in the three years since the Jobsoutlook survey was launched.

The study indicates that this lack of confidence is affecting recruitment, with respondents’ confidence in making hiring and investment decisions declining by 3 percentage points to +5, the lowest level recorded since June 2016.

Predicated demand for permanent employees in the short-term fell by 4 percentage points to +17, and in the medium-term dropped by 6 percentage points to +25, compared with the previous month.

However, both of these figures are still 3 and 9 percentage points higher, respectively, than those recorded in the same period last year.

Half of UK employers who hire permanent staff expressed concern over the sufficient availability of candidates for permanent jobs, with anticipated shortages of workers in the engineering and technical, health and social care, and hospitality sectors causing most anxiety for employers.

REC chief executive Neil Carberry said the survey showed beyond any doubt that uncertainty was “damaging for job creation”.

He added: “With only a month before Britain is due to leavetheeu,businessesacross the country are clear that they need clarity about the plan for after the end of March.

“That must mean a smooth move to a Brexit deal – not a dangerous no-deal experiment. A sensible approach will underpin strong growth in jobs.”