Job vacancies plummet

Job vacancies have plummeted by 12 per cent since the start of the year, with a nine per cent drop in April alone, a report from the jobs website Indeed has found.

Indeed blamed the looming EU referendum and the introduction of the so called “living wage” for the fall.

However, Unite also cited a backdrop of failed government policies which have led to decreased output in the construction, agriculture and manufacturing industries during the first quarter of 2016, as significant factors.

The monthly survey, which tracks levels of recruitment in 13 sectors, found that only one – hospitality – saw an increase in job listings in April, likely to be the result of seasonal factors.

Vacancies reduced in all other sectors, with the number of openings for HR professionals slumping by 18 per cent, and financial services companies reducing recruitment by 15 per cent.

Indeed economist Mariano Mamertino said the fall in job creation was linked to the rise in the minimum wage and fears over Britain leaving the EU.

She said, “Job vacancies in 12 of the 13 sectors tracked by Indeed fell in April, accelerating a trend that began in March following the announcement of the EU referendum.

“The combination of business uncertainty about the potential impact of a Brexit, the slowdown of the economy amid global economic headwinds and a sudden increase in the wage bill for many firms has triggered a sharp cooling in the jobs market.”

Unite assistant general secretary Steve Turner agreed that factors such as the EU referendum affect job creation, but he said it was important to remember that the government’s policies are the primary impediment to economic growth and the creation of decent work for all.

Production

From January to March this year production and manufacturing fell by 0.4 per cent, while construction declined by 0.9 percent and agriculture by 0.1 per cent, according to office for national statistics figures. Service industries were the only sectors to see growth, with an increase of 0.6 per cent.

“There are always events that impact on the immediate economic situation we face, for positive or negative reasons.

“There can be boosts from hosting the Olympics and sunny bank holidays, there can be negative factors such as the uncertainty of the EU referendum and international events that are completely beyond our control,” Turner said.

“This is life and should not distract from the fact that the basics of how the economy works, for better or worse, and the ability to weather the unexpected, is in the hands of government.

“And because of this government’s economic policy of austerity we have seen the longest real fall in living standards since records began, falls in productivity and rises in precarious and insecure work.”