New tech blow to recruitment Automation causes slump in hirings

COMPANIES are taking on new staff at the slowest rate since 2012.

Top recruitment firm Manpower said a rapid slowdown in hirings was being fuelled by new technology, rather than just the weakening economy or Brexit.

The tailing off in demand comes despite the UK’S unemployment rate falling to a 43-year low.

Manpower carries out a regular survey of more than 2,100 firms, with its findings used by the Government and Bank of England. It showed 4% more companies planned to hire than fire staff over the summer. But that was the weakest for six years. One of the areas highlighted in the survey is “business and financial services”, where firms are set to cut jobs for the first since the 2009 banking crisis.

Manpower UK managing director James Hick said: “Technological innovations mean banks are now more automated, and we’ve already seen branch closures announced by the likes of RBS and Lloyds.”

Automation is also impacting on the number of new jobs being created in everything from outsourcing firms to estate agents, said Manpower.

“Technology is killing a lot of these jobs,” Hick added. “It’s been a creeping affect but it’s really hitting now.”

The survey also found 3% more public sector organisations planned to shed rather than take on new staff between July and September.

However, 7% more manufacturers aimed to hire workers, despite official data out yesterday suggesting output had weakened.

There is also a mixed picture across the UK, with the West Midlands seeing the largest fall in hiring intentions, but Yorkshire and Humber enjoying a big rise.