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UK's robust employment data - "Benign limbo is more business as usual than post-Brexit bounce"

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“The benign limbo in Britain’s jobs market continues - but these robust employment figures are more a case of business as usual than a post-Brexit bounce.

“The reality is that the dust has yet to settle on the referendum result. Despite some surprisingly upbeat economic data, uncertainty is still a major concern for many business owners, and it will continue to drag on recruitment.

“Data from the Indeed Industry Employment Trends, a monthly index of job postings across 13 key industries, showed hiring was broadly down in July and August, suggesting that uncertainty is already dampening employers’ desire to hire.

“However the landing has been substantially cushioned, at least in the short-term. Businesses can only defer their hiring decisions for so long, and it’s likely that many employers who held off hiring in the run-up to the vote were forced to get off the fence in July.

“Meanwhile subdued wage growth continues to squeeze workers’ disposable incomes just as the weak Pound starts to drive up the cost of a weekly shop.

“The number of people in Britain looking for jobs overseas has dipped since the spike recorded in the immediate aftermath of the vote, but it remains high - with countries like Ireland, Canada and Australia particularly popular.

“And inbound searches from Europeans looking for work in the UK remain high - keeping Britain as the top destination in Europe for talent.

“The mobile workforce remains a key part of Britain’s economy - which will ensure that arguments over the free movement of labour will be a key sticking point in the Brexit negotiations.

“With Britain's labour market still working broadly as normal and levels of employment staying strong, the full impact of Brexit has yet to be felt. But it’s worth remembering that Brexit will be a process, not an event - and a long road lies ahead.”