The period of uncertainty expected following the UK’s decision to leave the EU came with the possibility of a depletion in business confidence.
George Osbourne, reported an “immediate and profound economic shock”. The treasury went further to report that GDP growth would be stunted by 3.6% leading to 520,000 less jobs, average wages falling by 2.8% and house prices would be hit by 10%.
As a company in a very ‘recession-sensitive’ industry, this is something we have kept a close eye on since June 24th both internally, with existing clients and across the market.
Internally we have seen an uplift in new roles added to our platform of 23.6% and a significant (14%) uplift in further reposting of volume based positions (clients requiring the hiring of 5 or more candidates per advert).
We supply heavily into the SME market and have conducted research across our client base to gauge business confidence. We found:
- 87% of companies surveyed have no plans to change their recruitment strategy since the referendum decision
- 21% of companies expect to hire at an increased rate than forecast in January 2016
- 58% expect the decision to leave the EU to positively impact the growth of their company and 19% expect it to have no impact
Across the market, much of the same can be found. REED report that 83% of their client base have no plans to freeze recruitment and have found an 8% increase in new jobs added. James Reed Chairman of the £1b turnover recruitment company was quoted as saying:
The vote hasn’t affected things. People are still hiring and there are lots of opportunities
The majority of reporting and data analysed above came prior the Prime Minister’s appointment and selection of her new cabinet. We are hopeful that as further examples of certainty prevail we will see further increases in economic confidence and the opportunity to help more and more clients fill any role for £139 or less!