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Brexit talks begin – what does this mean for UK employment?

The latest REC JOBS OUTLOOK REPORT shows that in the 3 months to May, a third of employers feel that UK economic conditions were improving and expected confidence in making hiring and investment decisions to improve. After dropping significantly following the EU referendum, confidence has now stabilised. However, confidence levels still remain far below those reported this time last year and there’s concern about shortage of skilled candidates in both temporary and permanent roles.

Key points from May’s report:

  1. One third of employers (33%) think the top priority for government should be developing a strategy to ensure businesses have the right people with the skills they need
  2. 42% of hirers anticipate a shortage for permanent candidates, while 32% forecast the same issue with temporary agency workers
  3. 35% of all UK employers have no spare capacity in their organisation
  4. Demand for industrial workers and drivers is high
  5. Employers’ satisfaction with candidates presented to them by agencies has improved by 8% since June 2016

Impact of Brexit on UK employment confidence

Following a surprise election outcome, Brexit negotiations are now underway. Theresa May will tell European leaders her plan to offer European Union citizens living in the UK safeguards over their rights after Brussels insisted the issue must be settled before talks on future trade relations can get under way. Brexit Secretary, David Davis, said, “Ever since the referendum, I have been clear that my first priority is to provide certainty to European Union citizens living in the United Kingdom, and to UK citizens resident in the European Union. So now that the negotiations have started, we are determined to get on with the job and deliver that certainty as soon as possible.”

Get in touch with our team on 01604 239555 to discuss your workforce planning requirements and any recruitment concerns.