Key Findings:
- Steepest drop in permanent placements for over three years
- Temp billings decline for first time since July 2020
- Pay pressures remain sharp, despite upturn in candidate supply
The latest KPMG and REC, UK Report on Jobs survey, compiled by S&P Global, signalled reduced recruitment activity across the UK during August. Permanent placements fell at a rapid pace that was the sharpest in over three years, while temp billings slipped into decline for the first time since July 2020. Recruiters frequently mentioned that the weaker economic outlook and cautious hiring policies had dampened recruitment activity.
The slowdown in hiring and reports of redundancies drove a further substantial increase in candidate availability. Concurrently, total vacancy growth continued to moderate, with the latest survey signalling a notable weakening in growth of demand for permanent staff. Nevertheless, competition for specific skills and the strong inflationary environment drove further increases in starting pay.
The report is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies.
Claire Warnes, Partner, Skills and Productivity at KPMG UK, said:
“The August summer break has seen little change in the ongoing tight labour market conditions. If you’re looking for a new role – the market remains in your favour, as starting pay continues to be driven up by inflationary pressures and a high demand for candidates with specific skills across many sectors.”
To read the full article, click the following link: Report on Jobs: UK recruitment activity weakens in August amid caution over economic outlook :: The REC
