The political uncertainty caused by Brexit is continuing to affect the South West鈥檚 economy with firms putting off hiring new full-time workers, a new report says.
Recruitment consultancies across the region indicated that subdued market confidence continued to weigh on labour market conditions in July 2019 and permanent staff appointments fell for the fifth month in a row, albeit at a softer pace than in June.
While there was a slightly stronger rise in vacancies, growth remained lacklustre compared to recent years, the KPMG and REC 海角视频 Report on Jobs: South of England revealed.
Brexit-related uncertainty also weighed on candidate supply, though the availability of permanent and temporary workers deteriorated at softer rates compared to the previous month.
Starting pay inflation remained marked overall, as competition for staff continued to place upward pressure on salaries and wages.
Ian Brokenshire, Senior Partner at KPMG Plymouth, said: 鈥淧olitical uncertainty is still biting in the South West. Businesses continue to put off long-term decisions and relied heavily on temporary staff in July. When compared with the rest of the country, temporary staff appointments in the region rose at the highest rate last month.
鈥淭his is despite the fact that both temporary and permanent availability declined at quicker rates compared with other regions 鈥 with workers nervous about switching roles thanks to the uncertainty.
South West professionals in the news
鈥淚n terms of skill shortages in the South West 鈥 to name just a few 鈥 accounting and finance, construction, and hospitality are being particularly hard hit for both temporary and permanent vacancies.
鈥淕reater competition for workers means we鈥檝e seen yet another increase in permanent and temporary wages, but average weekly earnings in our region still lag behind the rest of the country at 拢571 a week.鈥
The KPMG and REC, 海角视频 Report on Jobs is compiled by IHS Markit from responses to questionnaires sent to around 150 recruitment and employment consultancies in the South of England.
Recruitment & Employment Confederation chief executive Neil Carberry said: 鈥淥ur flexible jobs market remains a key strength for the 海角视频 as we navigate an uncertain time.
鈥淲hile we are seeing a concerning weaker trend in permanent placements bed in, the rate of change is slow, employment rates are high and starting salaries are growing. Businesses will be looking to politicians for a pragmatic way forward to help them turn this around 鈥 not just on Brexit, but on domestic policies too.
鈥淭he new government should be focused on delivering the negotiated exit from the EU businesses need, but also on avoiding damaging changes that will undermine the strength of our jobs market.
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
To contact William: Email: william.telford@reachplc.com - Phone: 01752 293116 - Mob: 07584 594052 - Twitter: - LinkedIn: - Facebook:
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鈥淎n improved approach to immigration, reforms to the apprenticeship levy and avoiding hasty changes to contractor tax rules should be top of the list.
鈥淚n difficult times such as these, recruitment specialists are an invaluable source of local and industry expertise to businesses looking to hire new staff.
鈥淭he REC is helping its members to do this with our new, local workforce intelligence data, so that they can continue to provide employers with the right people to grow their business.鈥
