Candidate availability continues to fall
- The EU referendum results are likely to have triggered the declining recruitment activity
- Employees remain in current jobs, amid economic stress and job security concerns
Candidate availability remains tight
The number of staff available continued to fall in July. During times of economic stress, people tend to stick with the job they have rather than look for new employment. Plus, amid fears of another recession triggered by a Brexit vote, job security is likely to become more important to workers.
Permanent placements fall at their sharpest rate since 2009
For a second successive month, placement rates have declined in July. Recruitment Connection’s managing director, Simon Bean, who has over 35 years of recruiting experience, has cited Brexit-related uncertainty to be the likely source of the decline in placements. Furthermore, clients have potentially changed their focus towards short-term staffing.
Temp billings continue to increase
Temporary staffing has continued to increase despite the decline in short-term staff availability. This is likely to be due to the uncertainty around the EU referendum results and its implications on the economy.
Permanent salary rise continues to plateau
The rise in starting salaries for successful permanent candidates has decreased to its lowest rate in three years. This may be as a result of the Bank of England’s announcement on the 2 per cent downgrade to average wage growth.
However, it will take time for the impact of the EU referendum to become clear and for market trends to emerge in the data. This is because there is inherent volatility in this sort of data, therefore warranting reason to be cautious.