Banks ‘turning off hiring taps’ on Brexit fears, says recruiter SThree

Jun 10, 2016

London’s banks have “switched off” hiring permanent staff as jitters over the EU referendum put the brakes on the UK financial market, the chief executive of recruiter SThree said today.

Of SThree’s top five banking clients, only one is currently taking on  new permanent hires, according to Gary Elden.

“At the moment, the taps are off. The UK is feeling a lot of pain but it’s reflective of the market. We’ve seen a declining trend in the number of jobs coming through,” he said.

“If we look at the level of responses to jobs, now there’s definitely a slowdown in the number of candidates. When there’s uncertainty, people are less likely to leave. The banking market has switched off completely.”  A slowdown in NHS hiring as the health provider tries to tighten margins has also dragged on the recruitment group.

UK gross profit for the half year ending May 31 was down 5% at  £32 million. For the second quarter alone —February to May — it fell 9%.  

Group profits — the UK makes up about a quarter of SThree’s profits — rose 6% to £119.7 million, thanks to strong growth in continental Europe and the US. 

The Brexit-induced slowdown has also extended to American companies sending over their top bosses to work in the UK, fresh figures showed. 

According to executive search firm DHR International, applications from US nationals for highly skilled visas dropped 6% in the first quarter against a year ago.


For the Evening Standard article please click here.