Employers struggle to recruit staff as applications drop due to Brexit

New study shows a the number of people available for new jobs is dwindling, leading to a push in pay for those already in work

UK employment is at a record high as starting pay rises due to pressure from firms to fill posts (PA)

Employers are facing ever more difficulties in recruiting staff as the number of candidates for jobs shrinks in the UK due to Brexit.

The availability of workers suffered its biggest fall in a year and a half in July, according to a survey.

Last year’s Brexit vote has made it more difficult for employers to fill jobs with some EU nationals leaving the UK.

London in particular is feeling the Brexit pinch, with hiring for permanent roles at a slower rate than other parts of the UK.

The Midlands and the North performed strongest in the latest figures published by the Recruitment & Employment Confederation (REC).

Kevin Green, chief executive of REC, said: “We can’t ignore the importance of our relationship with the EU to employers. If we want to keep our jobs market successful and vibrant, we must make it easier, not harder, for employers to access the people they need.”

He added: “Employers are not just struggling to hire the brightest and the best but also people to fill roles such as chefs, drivers and warehouse workers.”

Earlier this year, a study by Deloitte suggested 38 per cent of lower-skilled EU nationals are considering relocating away from UK businesses, a move which could potentially damage a range of industries including high street retailers, small businesses and public services.

The survey said rates of pay for both permanent and temporary staff are rising due to the fall in the number of job applicants, pushing starting salaries to their highest in 20 months.

It also noted that UK employment figures received a further boost as the number of permanent jobs grew at their highest rate in over two years and unemployment at its lowest since the 1970s.