Hiring confidence tumbles in ‘Remain’ heartlands and finance centres of Scotland and London

As the government prepares to trigger Article 50, business hiring has dropped to its weakest level since Q1 2014, the group said.

The ManpowerGroup Employment Outlook Survey is based on responses from 2,119 UK employers who were asked whether employers intend to hire additional workers or reduce the size of their workforce in the coming quarter.

Employers in six of the nine sectors surveyed reported a falling Outlook, while the overall Net Employment Outlook, which includes both public and private sector UK employers, has dropped two points to +5 per cent.

London and Scotland, the strongest Remain-supporting regions, are the biggest fallers this quarter, down 5 and 11 points respectively.

Hiring intentions in Scotland stand at their weakest level since 2012, while London is the least optimistic region in England for the first time in almost three years.

Jason Greaves, operations director at Manpower Group, said: “With Article 50 looming and Scotland’s post-Brexit position still uncertain, lots of employers are battening down the hatches and cutting costs. Aberdeen’s jobs market is particularly slow due to the ongoing oil slump.

“In Edinburgh, we’re seeing how political uncertainty is also affecting the availability of candidates, with many reluctant to take risks and move to new firms. As a result, employers are struggling to fill their vacancies.”

ManpowerGroup UK Managing Director Mark Cahill, said: “The impending trigger of Article 50 is clearly affecting confidence in the jobs market. The private sector plans to hire at its slowest rate since 2014 (+4 per cent), with only construction, manufacturing and transport and communications planning to hire at previous levels. The employment rate is at its highest level since records began in 1971, but if you lift the bonnet to look at the engine of the economy, job creation has slowed and employers are becoming more cautious. The companies which have powered Britain’s economy through the immediate post-referendum period are easing off the gas.”

Mr Cahill added: “With huge uncertainty surrounding sectors like banking and financial services – critical to the economy in London and Edinburgh – it’s no surprise that confidence in these regions is suffering. We’re seeing increasing numbers of Londonbased professionals giving up their city careers to become self-employed, go freelance, or move into the not-for-profit sector, where hiring has remained strong at +7 per cent.”