'EU exit would threaten jobs' says Manpower

The government has promised an in-out referendum on EU membership by the end of 2017.

A UK withdrawal from the European Union (EU) would threaten jobs and harm its economy, a major recruitment firm has said.

Manpower said a so-called Brexit would create "a vast amount of uncertainty and instability" and make firms less willing to invest in new jobs.

It would also make it harder for British firms to recruit qualified overseas workers, it said.

The government has promised an in-out referendum by the end of 2017.

'Economic health'

Manpower said its survey of 2,100 employers indicated that the UK was facing a "critical shortfall" of qualified workers, particularly in the north of England.

"Our position on Europe is clear: leaving the EU would threaten jobs and harm Britain's prospects.

"At a time when we face serious skills shortages in key areas of the economy, that [an EU exit] could have a very negative effect on our economic health," said Manpower Solutions UK managing director James Hick.

Businesses so far seem divided over the historic vote.

Employers' body the CBI has said continued EU membership is in the UK's national interest, while the British Chambers of Commerce has said 55% of its members are in favour of a "reformed Europe".

Last month, the chairman of construction equipment maker JCB said that the UK had nothing to fear from the UK's exit from the European Union.