Global trade woes have dented business trade in the UK. According to a survey of the labour market, employers in Britain have paused the hiring process, extending the length of the unemployment for those who had been laid off and sacked.
Companies in the survey have declared that Brexit uncertainty and slow growth in global trade have caused wreak havoc on their businesses. Ten months ago, in March 2019, a large number of British companies prepared to cut down on vacancies.
Manpower Group conducted a survey that found that companies had decided to put a hold on hiring plans because of Brexit uncertainty. Since ten months have passed by, the hiring plans still seem to be a seven-year low.
During the survey, several companies reported that the hiring of additional workers since 2012 had been reduced by 2%.
London, the hub of employers, is the worst affected city
London, the hub of employers, has faced the worst consequences after putting the hiring plans on hold. The hiring dropped by 5%, and it is going to sustain for the first quarter in 2020. However, according to the survey, some of the companies have fared even worse. Hiring confidence has fallen by 15%, the lowest in a decade.
The survey by Manpower Group revealed that the financial sector, in particular, the accountancy and law firms, began to stop hiring in the summer this year and have shrunk ever since. However, these firms had aggressively recruited staff once.
The report used as a key indicator by the Bank of England that says the declining level of confidence in every sector is painting a sluggish picture of the start of 2020, causing a great risk to the economy.
The survey has also stated that the wage growth has declined in the UK because employers are bracing themselves for the threat imposed by no-deal Brexit and the slowdown in the global trade.
The employment has fallen by 60,000 – the biggest drop since 2015
Employers have put hiring on ice after many years of strong hiring because of sluggish movement of the global economy, no clarity about Brexit. Such reasons are weighing on the minds of employers.
Recruitment is expensive and companies do not want to make investment decisions unless there is a certainty. Some employers continued to bleat about the shortage of skills among engineers, IT staff and customer service representatives.
Some of the employers are nope trying to invest in hiring. This investment is evident in the automobile sector, but employers of other sectors are still hesitating to decide on hiring plans.
While halted hiring is leading to the sluggish portrayal of 2020, several employees will start 2020 with no jobs. Many employees have been made redundant, and some are struggling to be hired for a very long time.
The high unemployment rate also leads to poor economic conditions. Companies need to understand that being unsure about the Brexit is forcing people to stay out of work even for a longer period.
Even though employers have lost the confidence of hiring people, some of them have reported that they were struggling to fill vacancies with skilled staff. Some sectors including the automobile and technologies need high-skilled people.
The bottom line
Soon the employers will remove the pause on hiring. In fact, the automobile industry has started making investments. Employees need to improve their skills in order to land a job as soon as possible.
Surviving on meagre income can be arduous, but direct lenders can help you tide over during financial emergencies. Redundant employees can apply for doorstep loans like Provident. Such loans come with flexible payments and hence people can manage to repay it.
