EU referendum: Brexit threat not destroying job market as February dip is seasonal

The possibility of a Brexit is not hurting the job market, job website CV Library has said. The company says that the 5% dip in job vacancies recorded in February is more likely due to seasonal factors.

According to CV Library, a slowdown or decline in February is very normal and the market should not panic about the prospect of the UK leaving the EU. The downturn follows a hiring spree in January, which resulted in a 43.8% surge in vacancies available month-on-month.

"It's typical to see a drop in vacancies in February – UK businesses always ramp up hiring in January following the slowdown over Christmas," Lee Biggins, founder and MD of CV Library said.

"It's not realistic to expect the market to maintain that pace of growth, and we often anticipate the numbers taking a slight dip in February. This isn't something the nation should be worried about; in fact we're seeing the labour market in a stronger position this year than last."

CV Library reported an 18.6% jump in February compared to the same month in 2015. Biggins added that the data should be looked at through an objective lens, rather than attribute shifts in the labour market to political issues.

"While the EU referendum does bring a wealth of questions – such as worries about further skills shortages - it's still early days and there's no reason to suggest that the UK is experiencing a hiring freeze as a result," he said.

The comments by the CV Library founder come as rival job site Adzuna, which saw the same dip in vacancies, blamed the movement on a Brexit threat. Co-founder Doug Monro said that the run-up to the referendum brought new unknowns to the labour market.

"Politicians are at risk of fuelling uncertainty fears and only increasing doubts, Monro said. "By doing so they're risking a weaker jobs market. It's a dangerous game to play. Thousands of employers and employees are already on edge. This lack of consensus is causing understandable concern for many companies."

The uncertainty surrounding the consequences of a Brexit has caused markets to be volatile since the referendum was announced for 23 June. Although most business groups are supporting Prime Minister David Cameron in his Remain campaign with EU reforms, others have sided with the Leave campaigns.

In regards to the labour market, Siemens CEO Juergen Maier told IBTimes UK that the skills gap in the UK should be filled by EU workers. Despite the country's strong academic track record, job-targeted education is still lacking and higher education institutions are not agile enough to meet the quick changes in technology.

A report by finance membership body TheCityUK also found that the UK leaving the EU would "would seriously damage economic growth and jobs in the UK".