The historic decision to leave the EU hit has hit some UK businesses hard; however, recent economic indicators suggest the majority have been unaffected thus far. Whilst Brexit plans have begun in earnest and the economic uncertainty experienced immediately after the June vote now dissipating, the initial shock appears to have been replaced by a bullish ‘let’s just get on with it’ attitude from most businesses and sectors. The recruitment industry is certainly one them.
Just like any business sector in the UK at the moment, recruitment firms are undoubtedly cautious about their next move post-Brexit; however, recent statistics indicate any negative impact is not being felt yet. If anything, the opposite seems to be the case.
Reed – one of Britain’s largest recruitment firms – has indicated that the employment market has been buoyant since the EU referendum. In the 8 weeks following on from the vote, there were 400,000 new jobs posted on Reed’s website – 30,000 higher than the same period last year.
Other recent statistics from the Association of Professional Staffing Companies (APSCo) all point to a similar positive marketplace. Vacancy numbers remained stable in August, with job vacancies up by 0.3%. The survey also found:
- Vacancies within recruitment industry rose by 8%
- Contract vacancies saw a dip of 2%
- Vacancies within financial services jumped 16%
Further positive indicators for the jobs market came for the latest UK Job Market Report. It showed that the current UK employment rate stands at 74.5% – its joint highest level since comparable records began in 1971.
As an additional positive note for jobseekers, advertised salaries also rose for the first time in 5 months in August. The average salary currently stands at £32,784, compared to £32,688 in July – a 0.3% rise. Marking the first salary increase since February this year, this could be taken as a signal that employers are feeling more confident and are investing more to attract the best talent.
Whilst those that warned of a Leave vote heralding a destruction of the UK’s fragile economy and jobs market have failed to see their premonitions realised, they are quick to claim that nothing has actually changed at this point and their warnings will ring true when Brexit eventually takes place. There is clear evidence that some employers are trying to anticipate this point and take the necessary measures to mitigate Brexit’s undoubted impact in the future. The state of the Consultancy sector seems to bear this out. Advertised consultancy vacancies currently stand at 12,441, up 5% from 11,857 in July 2016, and up 10% from the same period 2015. The average Consultancy salary has reached £47,760, an 8.9% year-on-year rise. The latest figures suggest UK employers are preparing themselves for a potential shortage of skilled workers post-Brexit by attracting talent now.
Overall, the positive market data that has been released over the last couple of weeks suggests UK businesses are adopting a largely bullish response to the doom and gloom espoused immediately after the Brexit vote. Whilst it would be naive to assume that there will be no negative effects when the break from the EU actually comes, there is no reason to think that this won’t be mitigated by new opportunities that arise and the preparation that most businesses will undertake in the lead up to it. It is certainly exciting times for the recruitment sector!
Enabling Change offer recruitment training, recruitment development and headhunting training courses to ensure your recruiting business is one that thrives in the new age. To find out more about our courses, contact us on 01264 360 234 today.