‘Turbulent’ jobs outlook linked to referendum and living wage
A new report suggests that firms are running out of options to hire staff amid a continued shortage of skilled workers. - Credit: PA
The jobs market is heading for “turbulence”, fuelled by uncertainty over the EU referendum and the impact of the national living wage, according to a new report.
Jobs site Adzuna said advertised salaries had reached a standstill as employment optimism “stutters”.
The number of vacancies is still increasing - up by almost 4% to 1.1 million last month - but advertised pay has fallen compared with a year ago in every region except Northern Ireland.
Industries most affected by the new national living wage of £7.20 an hour for over 25-year-olds include retail and manufacturing, said the report.
Doug Monro of Adzuna said: “It’s a time of turbulence for the jobs market. Unemployment is climbing and political uncertainty could well be impacting hiring plans.
“In particular, recent reports indicate hiring permanent staff may be put on pause until after the EU referendum as employers turn to temporary workers to fill gaps.
“Predictions of risks to jobs and the economy show how vulnerable the employment sector can be to wider economic change.
Most Read
- 1 Go-ahead given for 74 new affordable homes for Suffolk town
- 2 McKenna on Hladky and Bakinson futures
- 3 Controversial statue on Stowmarket roundabout gets green light
- 4 Husband sues hospital over 'medical neglect' death of wife
- 5 5 of the prettiest villages in Suffolk
- 6 'Let's turn this into a fortress' - Town season ticket sales hit 16k
- 7 Mike Bacon: A perfect start to hopefully a perfect season
- 8 Missing 17-year-old boy found safe
- 9 7 roadworks Suffolk drivers should be aware of this week
- 10 Plans for second village school scrapped in favour of bigger site
“The new national living wage also poses a natural challenge to the status quo. Nerves about bigger wage bills could mean staff perks will be first to go to fund companies’ extra costs. These reports are already flowing in, with overtime pay already taking a hit.”