Employment recovering from Brexit dip
The Financial Times are reporting that recruitment companies are currently placing candidates at the fastest pace in two years, following a huge downturn surrounding Brexit.
A survey of 400 recruitment agencies showed that the number of candidates being placed in permanent roles has soared, while during several months around the Brexit referendum last year permanent placements crashed and the majority of placements were being made on a temporary or contract basis.
At Pareto, we were fortunate enough to see very little change in the recruitment side of our business. This would make sense for two reasons; a) we’re good at what we do (and naturally modest with it!) and b) uncertainty around Brexit requires a strong sales team to handle the fallout.
Recruiters also reported increased difficulties in getting talent in from other EU countries, a particular problem in London where EU workers account for 17% of the workforce, as opposed to 7% across the rest of the UK. We know that employers are becoming increasingly concerned about the growing labour and skills shortage following Brexit, which has led to a lower level of immigration and a higher level of emigration.
The good news is that there are some solutions available. Companies can either hire and train some of the huge quantity of UK graduates joining the workforce annually or provide further training to new and existing staff. We also offer an executive recruitment service, tracking down existing talent in the UK and handling all aspects of recruiting them.
Brexit is obviously still having an impact on businesses, who are delaying medium and longer-term investment plans due to uncertainty. Wage growth is also not moving as quickly as usual, which has been put down weak productivity performance in the UK as a whole.
However, let's take some comfort in this recovery of recruitment rates. Unemployment is at its lowest level in 42 years and strong employment is some good news for the economy.