NLW and Brexit impacting on job openings, says Spreadex
Job vacancies in Britain slumped in April as uncertainty around the country's European Union membership referendum and the introduction of a higher minimum wage made employers more reluctant to hire, according to www.spreadex.com.
Job openings dropped by 9% in April from March and were down 27% versus a year ago, the survey by Indeed showed on Tuesday, a day before the release of official jobs market figures.
The monthly release said the slump in recruitment began in March and accelerated in April when the government introduced a new and compulsory higher minimum wage of £7.20 an hour, up from £6.70 for workers aged 25 or above.
Connor Campbell, a senior market analyst at www.spreadex.com, commented, “In a rather ominous sign ahead of Wednesday’s jobs report it was revealed this Tuesday that the UK’s job vacancies have slipped by 12% since the start of the year as employers react to the introduction of the National Living Wage. The news doesn’t seem to have any material impact on the FTSE at the moment, but that may change when the wage growth and unemployment rate figures are revealed tomorrow.”