The KPMG/Recruitment and Employment Confederation (REC) Report fell from 53.7 to 49.7, indicating a contraction in the job market.
On Friday, the results of a recent survey of recruiters has piled on mounting evidence of business caution ahead of Brexit. British employers had slashed the number of permanent hires recruitment agencies last month, for the first time since July 2016.
The permanent jobs placement index in the monthly KPMG/Recruitment and Employment Confederation (REC) Report on Jobs fell to 49.7 from 53.7. A fall below the 50 mark indicates contraction.
The overall number of vacancies for staff increased at the slowest rate since October 2016 showed the survey.
Recent data from other sources also undersocre this trend of companies cutting back on their hiring and investment while awaiting for more clarity on Brexit.
“The survey results are a sharp reminder to politicians in Westminster and in Brussels of the need to provide businesses with clarity about the path ahead, so they can invest with confidence,” said Neil Carberry, REC’s chief executive.
On Thursday, the Bank of England had stated Britain faces its weakest economic growth in a decade in 2019 because of uncertainties revolving around Brexit and a slow down in the global economy. The central bank stuck to its message that interest rates will rise if an EU divorce deal is done citing growing pressure from domestic inflation which in turn is being steered by a labor market that is running close to capacity, thus pushing up wages.
Friday’s survey revealed, starting salaries paid to new permanent staff rose at the fastest pace in three months, although history suggests that cooling demand for staff usually results in slowing wage growth.