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UK unemployment data - "Brexit result didn't create employer uncertainty, it amplified it" - reaction from Indeed economist

Mariano Mamertino, economist at the global job site, Indeed, comments:

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“These rose-tinted jobs numbers give a snapshot of the pre-Brexit labour market. The reassuringly upbeat data give a historical, rather than predictive, view.

“The surprise result of the Brexit referendum has had a dramatic impact which has yet to be reflected by the official figures.

“However there are some constants between the pre- and post-referendum jobs markets. The referendum result didn’t create employer uncertainty, it merely amplified it. With no end in sight, many employers continue to hold off on making hiring decisions.

“Yet some employers, such as those who rely on seasonal workers, have no choice but to hire. For now this is giving the market a ‘soft landing’, and new jobs continue to be advertised at a steady rate.

“The latest Indeed Industry Employment Trends report found that job postings in June increased marginally in 10 out of 13 sectors - albeit mostly down year-on-year - suggesting that hiring sentiment has yet to erode substantially.

“But these are early days, and the full impact of the political and economic uncertainty has yet to filter through to employer confidence.

“Of more immediate concern is the indication that increasing numbers of British jobseekers have begun looking for work beyond our shores. In the hours and days following the Brexit vote, the share of Britons searching on Indeed for work overseas doubled.

“While the levels of outbound job searching have since eased, the prospect of a flight of talented, high-skilled workers poses a major economic risk as the country confronts the heightened economic challenges ahead.”

www.indeed.com