Professional recruitment firms now have just 1% more vacancies on their books than this time last year according to new survey data from the Association of Professional Staffing Companies (APSCo).

“While demand for professional contractors has increased year-on-year, the rate of growth is far less than we have become accustomed to in recent months, creating a perception of market slowdown. However, it is worth remembering that the employment rate remains the joint highest on record at 74.1%,” Ann Swain, Chief Executive of APSCo, said.

“Commentary and conjecture surrounding Europe, not least the Treasury’s 200-page Brexit analysis, has of course had a negative effect on hiring confidence,” Swain said. “But regardless of market uncertainty, professional talent is a valuable commodity which is crucial to the success of any organisation. With this in mind, remuneration levels for skilled workers have remained strong despite the fact that hiring is temporarily cooling.”  

There were notable variations between the trade association’s core sector groups in terms of hiring activity. While permanent vacancies across both financial services and marketing, for example, have increased (10% and 12% respectively), IT and engineering have both recorded dips (5% and 13% respectively).

Median salaries across all professional sectors continue to climb steadily, increasing by 3.9% year-on-year. This figure is characterised by notable fluctuations in terms of sector, with Financial Services, for example, recording an increase of 8.4%.

Temporary and contract vacancies remain largely unchanged across the professional staffing market with opportunities up by just 1% across the board year-on-year. Vacancies across financial services, however, are particularly strong, rising by 30%. Social Work was also up 5% year-on-year, while IT (-6.7%), Marketing (-1.0%) and Engineering (-0.8%) were down year-on-year.

Permanent vacancies increased in Marketing by 12% year-on-year, Finance by 10% year-on-year, and Social Work by 5% year-on-year, while Engineering decreased by -13% year-on-year and IT was down -5% year-on year.

“While contractor vacancies often counterbalance a fall in demand for permanent talent, the fact that all hiring activity has close to flat-lined is indicative of the extent to which uncertainty linked to the EU referendum is deterring companies from taking on new staff,” Swain said.

“Britain’s service and manufacturing sectors are stalling, housebuilding is slowing and consumer confidence is at its lowest level for more than a year. It seems that British business has well and truly pressed the ‘pause’ button while it awaits the outcome on the UK’s future in Europe,” Swain said. “The exception to the rule is the Financial Services sector, where external influences and ongoing change management projects mean demand for talent remains insatiable.”