77% Of UK Workers Believe That The Recruitment Market Is Being Adversely Affected By Brexit Uncertainty

Further to our recent article on Brexit uncertainty, a new survey by connor.co.uk has found that 77% of UK workers believe that the job market has been adversely affected by Brexit uncertainty. 

Recruitment Adversely Affected By Brexit Uncertainty

The new research by Connors found that:-

• 77% of the respondents to the survey stated that the recruitment market had been adversely affected by Brexit uncertainty, and was stagnating as a result
• 1 in 4 UK workers are wary of leaving their current job due to the uncertainties surrounding Brexit
• Many organisations are holding off on recruitment until the Brexit uncertainty subsides
• Just 25% of organisations have appointed a person within their company to handle the consequences of Brexit, whilst just 17% had conveyed what their Brexit plans were internally. Moreover, 41% of workers said that their employer had not told them anything at all about what their Brexit approach was.

The Director of Business Change at Connors, Sharon Platts, states: "We’ve seen that organisations are worried about the impacts of Brexit – and with employees scared to move jobs, paralysis can often be the consequence. At the same time, recent labour market statistics have indicated that the pool of available talent in the UK is shrinking, making it harder for organisations to attract the best talent. If organisations give in to that instinct to put hiring on hold, they may well find things much harder in the future.....Organisations need to actively increase their resilience during times of uncertainty. We’ve been actively helping HR leaders to evolve their organisations, making them agile enough to withstand Brexit – meaning they don’t need to let Brexit put any of their plans on hold."

Other Recent Research

The research by Connors supports other recent research which highlight that the recruitment market and other sectors of the economy are being adversely affected by Brexit uncertainty. The findings are as follows:-

• The CIPD found that 71%of those organisations that are hiring new staff were finding their vacancies difficult to fill. This is up 7% compared with a year ago. 43% of employers stated that it had become harder over the last year to recruit new staff, with 32% finding it more difficult to retain staff. Accordingly, 56% of employers have had to raise their starting salaries to assist them in attracting new employees of the right calibre, whilst 55% have pitched pay rises at a level designed to help them retain existing staff
• The Royal Institute of Chartered Surveyors has found that 77% of real estate professionals believe that Brexit uncertainty has adversely affecting the housing market
• According to the IHS Markit household finance index, consumers are holding back on major purchases such as cars and holidays. Indeed, the index hit a 13 month low in March 2019
• Recent analyses by the Guardian found that increasing numbers of companies are cutting back on investment. This is also supported by the latest British Chambers of Commerce (BCC) forecast, which states: "It is clear that political inaction has already had economic consequences, with many firms hitting the brakes on investment and recruitment decisions as a result of ongoing uncertainty. Worse still, some companies have moved investment and growth plans as part of their contingency preparations. Some of this investment may never come back to the UK. The economy is currently growing sluggishly at best, but a messy and disorderly exit from the EU would do real and lasting damage to the UK’s economic prospects. A clear course of action on Brexit is needed from government, and greater levels of planning and guidance to prepare its own agencies and communities for all possible outcomes."

With all aspects of the economy clearly being adversely affected by Brexit uncertainty, the BCC advise that: "For too long Brexit has distracted from efforts to remove barriers to growth at home, including critical skills gaps, ageing physical and digital infrastructure systems, and high costs in the business environment. If the UK economy is to have a shot at escaping a Brexit-induced black hole, practical growth issues here at home need to be tackled urgently."