Survey finds employers ‘more cautious’ on hiring post-Brexit.

‘UK employers have become more cautious about hiring new staff following the vote to leave the EU, a report claims.

The proportion of employers expecting to increase staff over the next three months dropped from 40% ahead of the vote to 36% after it, according to a survey by HR body the CIPD and Adecco.

It said the fall was "significantly sharper" among private sector firms.

"There has been a clear deterioration in hiring intentions... as a result of the Brexit vote," the report said.

The CIPD said the survey's results suggested post-Brexit economic forecasts of a marked downturn in the labour market next year would be proved right.

"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," said CIPD acting chief economist Ian Brinkley.

Recruitment agency Adecco chief executive John Marshall said employers appeared to be taking a "wait and see approach".

"Uncertainty around Brexit is making employers nervous. This caution seems sensible but unless employers want to see their growth stymied, they need to take proactive steps," he added.

The survey was based on responses from 726 HR professionals between 10 to 23 June and 618 HR professionals between 8 to 17 July.’ - BBC News

‘Meanwhile, a separate survey of 170 chief executives by accountants Grant Thornton found that 49% of respondents were less confident about the year ahead, while only 8% felt more confident. More than 20% are actively planning to decrease investment, while 56% remain unchanged in their investment decisions, Grant Thornton said.’

‘The comments come after the Bank of England cut interest rates earlier this month for the first time in more than seven years, to a record low of 0.25%, in abigger-than-expected package of measures designed to prevent a post-Brexit vote recession.

The Bank signalled that rates would be reduced further in the coming months as the economic fallout from the decision to leave the EU becomes clearer.

Robert Hannah, the chief operating officer at Grant Thornton, said: “While much of the immediate political and economic turbulence following the outcome of the vote has settled over the past few weeks, the general outlook for the UK economy remains a top concern for most businesses.

“The Bank of England’s interest rate cut earlier this month will have been met with mixed reactions. Many businesses will be encouraged by lower borrowing rates and the stimulus package announced, whereas others will see the reciprocating impact of the fall in sterling hit their cost of imports and be discomfited by the BoE’s outlook on the UK economy.” ’ - The Guardian

Go Back