Brexit fears causing hiring slowdown for multinationals

Multinational companies in London have reduced the number of senior executives they are bringing into the UK due to fears over the potential impact of a Brexit referendum outcome.

Global executive search firm DHR International has said that there has been a significant drop-off in the number of highly-skilled worker visas applied for by US nationals in Q1 of 2016, compared to 2015 and 2014. The firm believes that slower hiring in London may be offset by multinationals shifting some staff to other European business hubs such as Frankfurt, Paris or Brussels.

There were 1399 applications from US nationals for highly-skilled visas in Q1 2016, down from 1490 in Q1 2015 – a 6% year-on-year fall.

Anna Marietta, a partner in the European Financial Services Practice Group at DHR International, said: “Uncertainty over Brexit means that some major companies have put their plans to hire senior talent in London on hold – additionally some internationally mobile executives may be more hesitant to relocate to the UK. Whether or not Brexit happens the vote is already causing uncertainty and hampering growth for multinationals operating in UK.

“However, this slowdown in hiring presents an opportunity for companies who are prepared to take on new staff in the UK. Fewer active hirers should mean a larger than usual pool of talented executives available for new roles.” 

The Morgan McKinley Employment Monitor has also shown that there have been monthly declines in both available jobs and professionals seeking new roles. The number of available jobs decreased 5% from 8070 in April to 7695 in May. Jobseeker numbers were marginally lower, with a decrease of 2% from 13,679 in April to 13,454 in May.

“The performance of many institutions has not been encouraging, resulting in candidates not being active. However, last month we did see an increase in appetite from organisations to interview professionals looking for a new role,” said Hakan Enver, Operations Director, Morgan McKinley Financial Services.

“We still see uncertainty due to the upcoming June referendum, but we’re seeing more and more influential people from various walks of life, coming out in favour of remaining in the EU,” said Enver. “If the eventual result is a vote to remain, then I would definitely expect a pickup in job numbers in the short term. The caveat being that in recent years, quarter 3 has been subdued in regards to jobs due to it being the summer period.”