After the fragile economic recovery of recent years, many people were understandably nervous about what a post-Brexit world would look like.
Would the recovery come tumbling down? The initial signs were bad – the pound tumbled against other currencies within the first week.
The political outlook is confused at best – we haven’t even started the ‘Article 50‘ 2 year timetable for leaving and we’re now approaching 3 months after the referendum. So where does that leave the economy …and what does it mean for recruitment?
The recent indicators have been very encouraging. The BBC revealed this week there was no ‘Brexit effect’ in latest jobs data. Unemployment fell slightly in the latest quarter, despite predictions of economic shock and a recruitment stall.
The UK services sector saw a record rise in August, according to the closely-watched PMI survey. Services account for everything from financial services through to cafes and shops, and around 80% of the economy. The rise in confidence takes the economy back to pre-referendum levels. This has got to be good news for jobs and recruitment.
Another question we should probably ask is: ‘Does it really matter?’ Not as flippant as it initially sounds – recruitment is a sector that seems to defy logic in some ways. When the rest of the business world is pulling in its horns, recruiters can sometimes look like they’re thriving. The more agile agencies can react to changing patterns and position themselves appropriately, for example focussing more on temporary than permanent positions or moving sideways into new sectors.
In addition, there’s never any shortage of individuals becoming dissatisfied with working for someone else. The recruitment sector itself always has a steady stream of start-up agencies, through good times and bad. Other sectors are the same …and eventually these one and two-person bands will either sink or swim (and start recruiting as they grow).
One final thought: marketing guru Seth Godin suggests the best time to start a business is in a recession. In short, if you can survive the poor times, you’ll thrive in the better times. More from Forbes on starting a business in a downturn.
How are things for you?