Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
The jobs market slowed sharply in August as the weaker economic outlook depressed recruitment activity, figures on Friday showed.
The KPMG and REC UK report on jobs showed permanent hires fell at the sharpest pace in three years, while temp billings contracted for the first time since July 2020.
Claire Warnes, skills and productivity partner at KPMG UK, said: ‘Despite an increasing pool of candidates this month, the economic outlook is keeping businesses cautious.’
‘Many employers aren‘t ready to commit to permanent roles, and those who are indicate they cannot find candidates with the right skills, causing these placements to fall at a rapid pace during August the sharpest for three years.’
Recruiters frequently mentioned that employers were hesitant to commit to new hires and adopted recruitment freezes due to a weaker economic climate, the report stated.
The slowdown in hiring and reports of redundancies drove a further substantial increase in candidate availability. Concurrently, total vacancy growth continued to moderate, for the sixth month in a row, hitting a two-and-a-half year low.
The report showed the rate of starting salary inflation edged down to the joint weakest since March 2021. While temp pay growth picked up from July, it was the second-softest since April 2021.
Neil Carberry, REC chief executive, said: ‘August is always a slower month for new permanent roles, but this has been exacerbated in 2023 by the lack of confidence to start the new hiring we saw among firms in the Spring.’
‘As inflation begins to drop, it is likely that firms will return to the market later in the year employer surveys suggest confidence may be returning. But for now, the labour market has more slack than it has since the heights of the first lockdown.’
Copyright 2023 Alliance News Ltd. All Rights Reserved.