United Kingdom recruiters face staffing shortages, blame Brexit

Patrice Gainsbourg
Agosto 8, 2017

The REC report, covering July, showed permanent staff placements grew at the fastest rate for more than two years.

Permanent placements have reached a 27-month high, while temp billings have reached their highest in almost two and a half years, according to the Markit/REC Report published this morning.

"The economy is slowing, there are signs of increased uncertainty, people are talking about investment decisions being..."

However, the availability of permanent staff declined further during the month, while the availability of temporary staff fell at the quickest pace in just over a year-and-a-half.

Kevin Green, REC chief executive, said: "The jobs market continues to confound expectations with both permanent and temporary placements growing at the fastest rate for over two years".

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However, previous increases in pay as measured by REC have not translated into big rises in broader measures of wage growth, something the Bank of England is watching closely as it considers when to raise interest rates from record lows. He noted that sectors struggling to find staff are also the ones particularly reliant on European Union workers and that Brexit uncertainties are forcing many workers to return to their native countries.

Official employment numbers released by the Office of National Statistics last month showed the United Kingdom unemployment rate had shrunk to the lowest since 1975, though this had so far seen little boost to wages.

"London in particular is feeling the Brexit effect".

He added: "Employers are not just struggling to hire the brightest and the best but also people to fill roles such as chefs, drivers and warehouse workers".

The data contrasts with latest official figures across the United Kingdom workforce which show pay growing at just 2%, below the inflation rate - meaning staff are seeing their pay cut in real terms. Financial services, a crucial part of the London labour market, are not hiring in their usual quantity as the uncertainty caused by Brexit makes them hesitant.

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