According to the REC’s (Recruitment and Employment Confederation) latest JobsOutlook survey, ‘political and economic uncertainty’ is ranked as the top challenge faced by a third of businesses.

The survey, which polled 601 employers, also shows that 21% of businesses say a shortage of suitable candidates for jobs is their main challenge. Furthermore, the data shows that there is a shortage of suitable candidates for permanent roles in the engineering and technical sector.

Moreover, 22% of employers intend to increase their permanent staff headcount within the next three months. In London, 28% plan to hire permanent staff in the short-term.

“With record-high employment and businesses continuing to expand, there’s a lot about the UK jobs market to feel good about,” REC chief executive Kevin Green said. “Hiring in the capital is picking up speed as demand drives business forward.

“However, employers are eyeing the road ahead with trepidation,” Green said. “There are signs that individuals are becoming less inclined to move jobs, meaning that filling vacancies is becoming even more difficult for hirers. Evidence that fewer EU nationals are moving to the UK to work is another concern. Sectors like healthcare and hospitality are heavily dependent on EU workers to provide the services the public needs.”

“All of this amounts to more pressure on business. The government can take positive steps to ease the strain by delaying the immigration skills charge planned for April and tax changes to IR35 in the public sector. Rushed policy changes will only serve to cause more confusion at a time when businesses are craving certainty.”

The data also shows that 33% believe that UK economic conditions are improving, while 29% think they are getting worse.