Ryan FowlerThe KPMG and REC, UK Report on Jobs survey for March, compiled by S&P Global, has indicated ongoing decreases in recruitment activities. Reports from recruitment consultants of hiring freezes and cost-cutting measures have led to a marked drop in permanent placements and the most severe reduction in temporary billings since July 2020.
The survey, conducted between March 12-22, also highlighted a fifth month of declining staff demand, albeit slightly less severe than the record 37-month drop observed in February. Consequently, the availability of candidates rose at its quickest pace in four months, impacting salary growth. Starting salaries for permanent roles increased at their slowest rate in over three years, and temporary wage inflation saw a four-month low.
Recruitment consultants attributed the downturn to an uncertain economic outlook and continued recruitment freezes. This has resulted in a year-and-a-half long decline in permanent staff appointments, with temp billings falling sharply in March, the steepest since July 2020.
Jon Holt, chief executive and senior partner of KPMG in the UK, said: “Persistent economic uncertainty has led to many business leaders delaying major investment decisions and relying on savings for growth during the first quarter of the year. But they are optimistic about the outlook improving.”
Neil Carberry, REC chief executive, added: “Economic growth has been sidelined for too long and must be at the heart of this year’s General Election campaign. Today’s data shows the economy in a holding pattern waiting for inflation and interest rates to ease, so that firms can get to investing.”
