According to a survey, the number of people in the UK securing a permanent job in July fell at the fastest rate since May 2009 following the Brexit result.

The Report on jobs, produced monthly by IHS Markit came in just a day after the governor of the Bank of England, Mark Carney, warned that around 250,000 jobs would be lost over the next two years following the Brexit result.

Unemployment rates hit 4.9% between March and May, the lowest it’s been since 2005. The results also indicated that some clients of recruitment agencies had shifted towards using short-term staff.

Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), which sponsors the survey, said: “The UK jobs market suffered a dramatic freefall in July, with permanent hiring dropping to levels not seen since the recession of 2009.”

“The truth is we don’t know what long term consequences the referendum result will have on UK jobs. With the political situation becoming more stable and the Bank of England making sensible decisions, we may well see confidence return to the jobs market more quickly than anticipated.”

38% of the recruitment consultants polled said they had placed fewer people in permanent positions in July, an increase from 32% in June.

Nursing and medical care was the most in-demand category for permanent staff during July.

“Demand for staff remains strong with vacancies continuing to rise, but the sharp fall in placements suggests that businesses are highly cautious about committing to new hires,” said Mr Green.

“Economic turbulence following the vote to leave the EU is undoubtedly the root cause.”

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