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UK jobs market in dramatic freefall post Brexit

Staff Writer |
The UK jobs market suffered a "dramatic freefall" in July as the European Union referendum hurt business confidence.

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A monthly report from the Recruitment and Employment Confederation (REC) showed the number of permanent jobs fell in July at the fastest pace since May 2009. Starting salaries for permanent jobs also rose at the slowest pace in more than three years.

"Economic turbulence following the vote to leave the EU is undoubtedly the root cause," said REC chief executive Kevin Green.

The uncertainty surrounding the outcome of the 23 June EU referendum has prompted more businesses to opt for short-term staff, the survey indicated.

However, Green said we should not overreact to a single-month's data as the return of political stability and the Bank of England's policy action on Thursday could boost confidence in labour market.

"The truth is we don't know what long-term consequences the referendum result will have on UK jobs," Green said.

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