Reluctance amongst workers to seek new roles

Reports from the latest KPMG and REC survey indicate that there has been a reluctance amongst workers to seek new roles due to uncertainty relating to Brexit, as well as a generally low unemployment rate which has led to a  decline in staff availability for both permanent and temporary roles.

That said, the continued strength, agility and flexibility of the UK labour market in uncertain times is meaning that employers are turning to temporary work to support their business and offer people opportunity while the long-term economic picture is unclear. There are signs that the jobs market is gently weakening for permanent roles, despite ongoing issues of skills and candidate shortages. This too is likely to be associated with uncertainty about the future path of the UK’s economy.

The report shows how the UK jobs market has seized up, with both employers and candidates waiting to see which direction Brexit is going to go in. For now, this smothers the prospects for growth and makes it a lot harder for companies looking to innovate. “Overall employers have hired fewer permanent staff in three of the past four months and most of the firms we’re speaking to say that uncertainty around Brexit is to blame. A subdued public sector is also contributing to the wider picture.

“On the supply side, a high rate of employment and the apprehension of potential candidates means there just aren’t a lot of suitably skilled people out there to hire anyway. This is an increasing problem for firms in technology, health, and engineering who are experiencing a skills gap.

“Concern over the long-term picture means now is a good time to be a temp’ with steep increases in pay for both day rate and short contract workers.”