Brexit effect: UK companies struggle to find recruits

The United Kingdom’s exit from the European Union is at least two years away, but companies in the country are already reporting a shortage of people to fill vacancies, mainly due to the uncertainty over Brexit and future rules putting off EU nationals.

The Recruitment & Employment Confederation’s survey on job released on Tuesday showed demand for staff rising sharply across the private sector. Engineering was the most in-demand category for permanent staff in April, closely followed by IT & Computing and Nursing/Medical/Care.

One of the reasons for many people voting to leave the EU in the June 2016 referendum was EU nationals with right to free movement cross Europe were taking up jobs. The EU nationals do not face the same tight visa and work rules applicable to nationals of India and other non-EU countries.

REC chief executive Kevin Green said: “Demand for staff is growing within all sectors and all regions of the UK, but there are fewer and fewer people available to fill the vacancies. We have the lowest unemployment rate since 2005, and people already in work are becoming more hesitant about moving jobs amid Brexit uncertainty”.

“Meanwhile, the weakening pound and lack of clarity about future immigration rules is putting off some EU nationals from taking up roles in the UK. As a result, candidate availability is at a 16-month low and recruiters are flagging a shortage of suitable applicants for more than 60 different roles from cleaner to accountant”.

According to recent official reports, Indian citizens accounted for 57% of total skilled work visas granted (53,548 of 93,935) among non-EU countries, with USA nationals the next largest nationality group (10,019 or 11% of the total).

The UK will hold a mid-term general election on June 8 prompted by issues related to Brexit.