Employers Avoid Knee-Jerk Brexit Reaction

Employers have avoided a "knee-jerk" response to the Brexit vote with hiring intentions still strong despite the result knocking confidence, new figures show.

The latest jobs outlook survey from the Recruitment and Employment Confederation (REC) found 24% of businesses were looking to take on more permanent staff in the next three months.

A majority, 64%, said they would maintain their existing headcount while just 3% expected to shrink their permanent workforce, according to the survey of 600 firms.

However the July survey also showed broader optimism had fallen over the past three months, with 21% saying they felt more confident about economic conditions, sharply down on 45% in June and 51% in May.

REC chief executive Kevin Green said: "It's not surprising that confidence took a knock following the referendum result, but there are reasons to be cautiously optimistic.

"In general employers have avoided knee-jerk reactions to staffing and this 'business as usual' approach bodes well for the UK jobs market in the next few months.

"Recruiters tell us that while their clients are taking longer to confirm permanent appointments, vacancies have continued to grow since the referendum."

The figures come after better-than-expected official labour market data last week showing that the number of people claiming unemployment-related benefits had fallen in July.

Meanwhile, manufacturing figures this week showed export orders had reached a two-year high in August after the vote to leave the EU prompted a plunge in the pound - making UK goods cheaper for overseas buyers.

Latest supermarket industry data and retail sales figures also indicated that the economy has proved resilient after the poll.