Permanent staff appointments decline at start of 2019 amid Brexit uncertainty

Permanent staff appointments declined at the beginning of 2019 as recruiters and candidates waited for the outcome of the Brexit negotiations.

Permanent placements fell for the first time in two years as companies reported that they were increasingly hesitant due to Brexit uncertainty. Placements also dropped due to a shortage of candidates.

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Starting salaries rose due a sharp decline in the number of candidates entering the job market and, while there was a steep increase in the total number of job vacancies available, the level grew at the slowest rate seen since October 2016, according to KPMG’s report on jobs.

Temporary staff growth fell to the slowest pace since May 2013, and the number of temporary staff positions fell in London and the north of England.

“With Brexit just days away now, it’s definitely a nervous time for recruiters,” James Stewart, vice chair at KPMG, said.

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“January marked the first fall in permanent staff appointments since the referendum and we’ve seen a sharp decline in the number of candidates entering the jobs market. This is pushing up starting salaries at historically strong rates.

“Both employers and employees are in ‘wait and see mode’ now and there is little reason to believe the brakes will come off the jobs market before we find out what sort of Brexit the UK is about to experience."