Here is a round-up of the top Brexit-related stories this week.
Employers opting for temporary staff
The number of permanent jobs awarded fell in July as a result of employers holding back due to Brexit uncertainty.
The IHS Markit/REC report on jobs found that businesses decided to hire temporary staff and contractors. The report also showed that permanent staff availability also fell.
Kevin Green, REC’s chief executive, said:
“Demand for staff remains strong with vacancies continuing to rise, but the sharp fall in placements suggests that businesses are highly cautious about committing to new hires.
“The record-high employment rate and ongoing skill shortages have made it difficult for employers to find suitable for the roles available in the past, and this remains the case.”
IFS highlights value of single market
The Institute for Fiscal Studies has published figures showing the economic benefit that membership of the single market brings. According to the IFS, the EU accounts for 44% of the UK’s exports and 39% of service exports. Single market membership would be worth 4% of GDP.
Ian Mitchell, research associate at the IFS, said:
“There is all the difference in the world between ‘access to’ and ‘membership of’ the single market. Membership is likely to offer significant economic benefits particularly for trade in services. But outside the EU, single market membership also comes at the cost of accepting future regulations designed in the EU without UK input.”
Employees nervous about the future
44% of working adults are pessimistic about the future according to a survey by the CIPD . 22% feel less secure in their jobs following the referendum and 21% feeling they need to gain more skills as a result.
The worried outlook for the future was most evident in workers in the public (61%) and voluntary (58%) sectors, and those aged 25-34 (63%).
Ben Willmott, head of public policy at the CIPD, said:
“On a more positive note, the evidence that employees feel they now need to upskill […] demonstrates that employees are engaged with their learning and development needs.”
People delaying big purchases
22% of consumer shave put off a major purchase following Brexit, according to Gocompare.
36% of those surveyed said that they were going to be more cautious with their spending, with 13% evaluating their finances to see if they can save more.
19% had put off a foreign holiday, 13% were delaying buying a car and 12% have put off moving home.
Nigel Holland from Holland & Co Chartered Accountants said:
“July saw a significant decrease in permanent job opportunities in the aftermath of post-Brexit uncertainty. With the IHS Markit/REC report which highlighted that businesses were more inclined to hire temporary staff and contractors instead.
There is a continual high demand for workers, but businesses remain highly cautious in hiring permanent staff, due to the current economic surrounding access to the single market.”
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