Morgan McKinley’s London employment monitor found that the number of jobs available in the city fell 7% month-on-month and 33% year-on-year.
The recruiter warned that hiring could continue to drop for the remainder of 2018, as this is the time of year that companies slow down their hiring until after the new year.
But in a separate survey out today, the Chartered Institute of Personnel and Development (CIPD) and recruiter Adecco found that employers’ plans to take on more staff are being hit by the lack of labour availability across the country.
The labour outlook survey found that 70% of employers with current vacancies reported at least some of their vacancies as being hard to fill.
This is driven by a big drop in the number of EU and non-EU migrants looking for employment in the UK.
“Contrary to the popular narrative, the labour supply shock is being driven primarily by falling interest from migrants from outside the EU,” the report said.
The number of non-UK-born workers in the country fell by 58,000 between Q2 2017 and Q2 2018.
Moreover, a third of employers who employ non-EU citizens said that using the current points-based system – currently used for non-EU citizens – to hire EU migrants would be too great of a burden, with 26% saying the salary threshold is too high and 20% saying the cost implications of the system itself are too high.
Gerwyn Davies, senior labour market analyst for the CIPD, said, “The data implies that the pendulum has swung away from the UK as an attractive place to live and work for non-UK born citizens, especially non-EU citizens, during a period of strong employment growth and low unemployment.
“This has heightened recruitment difficulties for some employers. It also underlines the risk that more non-UK-born citizens and employers will be discouraged from using the post-Brexit system if more support is not provided and it is not made simpler, fairer and more affordable; especially for lower-skilled roles.”