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UK – Job vacancies saw a fall before EU Referendum

28 June 2016

Employees in the UK put off moving jobs in May as EU Referendum uncertainty led to fewer available vacancies, according to the latest UK Job Market Report from Adzuna.co.uk.

The report showed that May saw 1,150,149 vacancies on offer, dropping 0.6% from 1,156,810 in April, the second consecutive monthly fall in advertised positions. Employers were cautious due to uncertainty surrounding the outcome of June’s EU Referendum, in which the UK voted to leave the EU.

Two-thirds of regions saw monthly vacancy falls with companies waiting out the result before taking on new talent. London saw the largest decline. Vacancies in the capital fell to 248,371, dropping by 4,017, the largest number across the whole of the UK. This slide equalled a monthly dip of -1.6%.

“May marked a nervous month for employers,” Doug Monro, co-founder of Adzuna, said. “Hiring has been particularly hurt by uncertainty in the run-up to the vote, as senior workers rode out the political storm before hopping companies. Lower-paid roles, such as temporary summer jobs, have been less impacted.”

Advertised salaries also fell in May to stand at £33,062, down 1.2% from the previous month, the largest monthly fall in 21 months, in a further sign that employers are cutting back on hiring in more senior positions. Salaries on offer for jobseekers have also decreased over the last two months after beginning to gain momentum at the start of the year.

Job competition in May reduced to 0.52 jobseekers per vacancy, decreasing from 0.72 in May 2015, as twice as many positions were available than those seeking work. Falling competition and falling vacancies suggest people are moving into work from unemployment, rather than moving jobs.

Teaching vacancies meanwhile continue to grow, climbing to 62,470 in May, a monthly rise of 3.0% suggesting it’s getting harder to attract new talent to the industry.

“After the political debate quietens, ongoing problems within the jobs market will re-surface,” Monro said. “And the chronic skills shortage is threatening key industries. Science, IT and Engineering have all been hit. To tackle this new pushes are needed, like investment in homegrown talent. But vital overseas workers are finding it harder to enter the country due to visa clampdowns – putting pressure on healthcare. Brexit debate and talks of an Australian-style points system have shown the need for skilled workers from abroad. They are a crucial part of Britain’s workforce – and keep many sectors afloat.”