AGAINST the backdrop of Brexit uncertainty, lower-than-expected economic growth and falling consumer confidence, employers in the South East are sticking to the status quo when it comes to hiring, with an outlook of +4 per cent, according to ManpowerGroup.

The Manpower Employment Outlook Survey is based on responses from 2,107 UK employers. It asks whether employers intend to hire additional workers or reduce the size of their workforce in the coming quarter. It’s the most comprehensive employment survey of its kind and is used as a key economic statistic by both the Bank of England and the UK government.

Chris Gray, director of Manpower UK, said: “Once again the South East’s hiring intentions are holding steady, matching the national average of +4 per cent this quarter. What has changed this quarter is that the jobs market has become incredibly candidate driven at all levels. This means there are many more entry-level opportunities and even here we are seeing more movement as some employers are increasing their salaries to attract talent.

“We are also seeing an increase in candidates being more choosy about the organisations they want to work for – placing a greater priority on career opportunities or the values of the business rather than simply the financial reward.

“The growth in online shopping and home delivery has seen a significant increase in demand for those with driving skills across the region. The skills and experience shortage when it comes to  driving roles has also led us to invest in driver training programmes to meet the forthcoming summer and peak demand in logistics.”

In comparison, the national outlook of +4 per cent equals the most downbeat hiring prospects since 2012. The outlook has been dragged down by a fall in hiring confidence in the finance and business services sector, which has plummeted to a nine-year low of -1 per cent.

James Hick, managing director for ManpowerGroup Enterprise, said: “This is the first quarter since 2009 – when Britain was in the depths of the financial crisis – that we’ve seen business and financial services employers record a negative outlook.

“As the UK is a global centre for financial and professional services, if the sector’s shrinking, it’s not good news for UK plc. While financial services only employ three-and-a-half per cent of workers, it generates about 11 per cent of Government tax receipts. Technological innovations mean banks are now more automated, and we’ve already seen branch closures announced by the likes of RBS and Lloyds, which will cause significant job losses.”

Mr Hick continued: “The business services sector is also hugely important to the UK’s economy, accounting for £186bn (11%) of the UK’s total goods and services produced and employing 4.6 million people – 13 per cent of the UK’s total workforce – in a range of businesses comprising everything from outsourcing companies and estate agents to law firms and accountants. We have seen countless negative headlines about the sector, and these are undoubtedly hitting hiring intentions.

“The shockwaves from Carillion’s collapse are still being felt, and outsourcing company Capita recently carried out an emergency £700m rights issue to pay down its debts and provide much-needed investment. Elsewhere, the big professional services firms are facing an even greater fight for international talent in the face of Brexit.”

In a gloomy quarter, manufacturing is a particular bright spot. Its outlook has increased to +7 per cent.

Mr Hick added: “The weak pound may be bad news for UK holidaymakers but it’s proving to be good news for British factories exporting overseas. Some British manufacturers have even been investing in expansion to cope with strong demand.”