Recruiters Hit By Brexit As Industry Body Expects "Challenging Period"

LONDON (Alliance News) - The Recruitment & Employment Confederation Chief Executive Kevin Green said the vote to leave the European Union is likely to usher in a "challenging period" for British business, and the UK labour market in particular.

The REC, an industry body for the UK's recruitment sector, said that its data had shown a slowdown in hiring as the referendum approached.

This echoed warnings from the likes of Hays PLC, which had warned on cautious client sentiment in the UK.

"Nothing will change overnight. There will be a prolonged period of renegotiation and readjustment. During this time government needs to do everything possible to help businesses to grow and create jobs," said Green.

Green emphasised the importance of EU workers to the UK, saying that they are "vital", and that "any change to our immigration system needs to recognise that," Green added.

"We hope that today?s Referendum result leads to a step-change in the way we prepare current and future jobseekers in the UK, so that new entrants to the jobs market are better equipped with the skills and attitude that employers need. Employers, educators and government must seize the initiative and create a pipeline of talent so that individuals and businesses continue to thrive in the post-EU era. Over the coming weeks we will be consulting our members so that the recruitment industry is ready to play its part," Green said.

Meanwhile, Healthcare recruitment agency Your World Healthcare said any possible restrictions that could be placed on European Union workers as a result of the UK voting to leave EU would "vastly affect the chances of filling our ever-growing healthcare shortages".

Your World Healthcare is part of Your World Recruitment Group Ltd.

Director Ben Lawrence said that, as an industry, healthcare's "first contingency plan now should be to lobby the UK Government to increase visa quotations from countries such as Australia. A restriction on healthcare professionals from South Africa, agreed more than decade ago, for example, will need to be reviewed to see if it can allow for their much valued healthcare professionals to come to Britain again."

"The next crucial step will be to permanently place nursing and healthcare professionals on the skills shortage list. With a growing population and ageing workforce within the NHS, tackling shortages will require robust action," Lawrence said.

Big recruiters were hit heavily in the aftermath of the UK's decision to leave the EU, with Hays down 21%, Pagegroup PLC down 19%, SThree Down 12%, Robert Walters PLC down 10%, Staffline Group PLC down 8.1% and Matchtech down 7.6%.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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