In June we reported on the mood the impeding EU Referendum vote was creating in the business world and speculated on the potential effects.
Despite so many opinions being offered it was impossible to offer any solid knowledge for what would happen post Brexit because it is an unprecedented situation.
It has been over a month since the vote and the situation is still very unclear, it will be some time before the UK officially leaves the EU. However we are now seeing some reports coming in of the earliest effects of the Brexit vote.
The impact on permanent employment and temporary staff/ contractors is interesting and may even in the short term have provided a slightly better environment for temporary workers.
According to the latest report on employment in the UK from the Recruitment and Employment Federation, which was released in June, we have seen a decline in permanent positions held for the first time since September 2012.
Although the drop in placements was slight this is still significant because it is the first measurable drop in the permanent labour market in 45 months.
The report cites survey responses from recruitment agencies. Some of the evidence suggests that the decline in permanent employment could be a result of Brexit. Part of the reason for this theory is that, in the run up to the EU referendum, Brexit was cited by survey respondents as the chief reason for hiring caution.
The other side of these hiring anxieties is a potential benefit for contracting staff and temporary staff. Temporary/ contracting staff employments grew slightly. This could suggest that employers are turning to umbrella company employees, rather than permanent staff, to help complete essential business projects, deadlines and manage fluctuations on demand.
In addition to an increase in employed positions, pay rates actually increased for these temporary and contracting staff, while permanent salaries grew at a slower rate since September 2013.
There has been a stronger demand for temporary staff in both public and private sectors. Temporary staff and contractors again saw strongest demand for their services, particularly in the private sector.
Industries with the most demand were contracting for nursing, other medical professions and care workers. Vacancies in hotel and catering staff came in second and executive/ professional staff saw the weakest rate of demand.
While circumstances remain uncertain for permanent employment experts continue to counsel calm leadership. This should help improve the job market and stabilise the economy in the long run.
Another interesting point from the report is that staff availability also declined in June. The supply of permanent candidates dwindled at a faster pace than the previous months. The availability of temporary/ contracting staff also fell.
Demand for talented staff remains high, so it seems it is mainly caution and fear of the uncertain in the present political climate that might be influencing the reduced employment of permanent staff. Contractors and temporary staff may find themselves in high demand currently and should keep an eye out for great opportunities.
