Employers have softened their intentions to hire new staff in the wake of the Brexit vote, a study today claims.
According to the latest CIPD/Adecco Group UK & Ireland Labour Market Outlook report employers surveyed ahead of the EU Referendum were somewhat more optimistic about hiring intentions than those surveyed afterwards.
As a result the net employment balance, based on the difference between the share of employers expanding their workforce and the share of employers reducing their workforce, dropped from +21 pre-Brexit to +17 post-Brexit.
However, the fall was significantly sharper among private sector employers, with the post-Brexit employment balance declining to +25 from +39 pre-Brexit.
It finds that the proportion of employers expecting to increase staffing levels over the next three months dropped by 4 per centage points from 40 per cent pre-Brexit to 36 per cent following the decision.
Ian Brinkley, Acting Chief Economist at the CIPD, said: “There is clear evidence some employers have become more cautious about hiring following the vote to leave the EU.
“While many businesses are treating the immediate post-Brexit period as ‘business as usual’, and hiring intentions overall still remain positive, there are signs that some organisations, particularly in the private sector, are preparing to batten down the hatches. Instead of looking at cuts, now is the time to be talking about investment in people.”