Briferendum Aftermath Series: REC warns of unemployment

According to the Recruitment and Employment Confederation (REC), uncertainties surrounding the June 23 referendum have led to the sharpest drop in new permanent jobs in the United Kingdom. According to data that are fed by recruitment consultancies, the number of people placed in permanent jobs declined for second consecutive month. Temporary recruitment grew but at the slowest pace in 10 months.

Key highlights from the report:

• Permanent placements fall at the sharpest rate in over seven years, the rate of contraction accelerated to the sharpest since May 2009.
• London is seen as the biggest impacted.
• Starting salaries for successful permanent candidates increased but the rate of growth eased to a 38-month low.  
• Higher temporary billings were recorded across all regions with the exception of London, where the rate of decline was the most marked in seven years.  
• The demand remained stronger for private sector roles than those in the public sector during July.
• Nursing/Medical/Care was the most in-demand category for permanent staff during July.
• Construction workers saw a decline in demand for their services, albeit modest overall. 

The Bank of England (BoE) delivered a comprehensive package of easing measures to heal the economy, now everyone will wait and watch to see whether the deterioration reverses or presses ahead. 

The pound is currently trading at 1.316 against the dollar.