The jobs market has taken “a significant change for the worse,” according to a new survey of hiring intentions at British companies.
The survey of companies by CIPD and recruiter Adecco found CEOs have shifted away from plans to increase their staffing levels pre-Brexit vote towards maintaining their staffing levels in the wake of the referendum.
While that may not sound like a bad thing — no new jobs are better than job cuts — the report says it will likely lead to a rise in unemployment next year.
Ian Brinkley, Interim Chief Economist at CIPD, says in the report: “These results make it more likely that post-Brexit economic forecasts of a marked downturn in the labour market in 2017, including a significant increase in unemployment, will prove to be right.”
The report points to figures compiled by the Treasury predicting unemployment to hit 5.7% by July next year, up from 4.9% last month.
Here is how hiring plans have changed pre-Brexit and post-Brexit vote:
CIPD and Accendo’s report, which also looked at where UK companies may relocate overseas too, is just one of a number of depressing recent readings on the UK jobs market.
The Bank of England’s August Agents report, where regional representatives quiz local businesses about their plans for the future, found “respondents expected a negative effect from the vote on turnover, capital spending and hiring activity over the next twelve months.”
PageGroup, one of the UK’s biggest recruitment firms, last week also revealed it had cut UK staffing levels by 3% since the start of the year, blaming “uncertainty impacting clients’ decision-making in the lead up to the EU Referendum.”