Recruitment declines sharply in June

The latest survey by recruitment consultancies revealed a rapid decline in hiring across the UK towards the end of the 2nd quarter.

The Recruitment and Employment Confederation/KPMG June report showed that permanent staff appointment fell at the fastest pace in almost two years while temporary billings dropped at the fastest pace since February. The survey participants indicated that a lack of confidence in the economy and cost concerns had caused companies to cut back or delay hiring staff.

Many reports indicated that employers had reduced their hiring because of a lack of confidence in the future and concerns over costs.

In June, the candidate supply grew at its fastest rate since late 2020. The supply of permanent workers grew at a faster pace than temporary workers, but the growth rate was the highest since November 2020.

Predictably, pay growth stagnated due to a lower demand for employees, tighter budgets from clients and an improved candidate supply. Both starting salaries and temporary wages increased modestly, with inflation rates significantly lower than historical trends.

In June, the growth in temporary candidates reached its highest level since November 2020.

The latest official figures released by the Office for National Statistics showed that the number of vacancies in the UK fell further in the three-month period ending in May. The number of vacancies fell by 150.000 on an annual basis to 736,000. This was the lowest number published in over four years.

The number of jobs available has decreased steadily for the past three years.

The number of cases is 10% lower than before the Covid pandemic (819,00 in the three-month period ending February 2020).

Retail was the one job category that saw the most drastic decline in the demand for permanent employees. Construction and engineering were the only two sectors that saw an increase in permanent positions, but overall it was only a mild upturn.

ONS data showed that the average weekly earnings (including bonus) rose by 5.3% annually in the Zeitraum

Three months until April Although the pay rise was strong in comparison to historical data, it was the lowest since the three-month period ending September 2024.

Jon Holt said that the geopolitical turmoil, rising costs and technological changes meant that companies “continue to wait and see” with their hiring. He said that the government’s infrastructure projects have increased demand for construction and engineering workers, which is a good thing.

Neil Carberry said that the REC’s chief executive had seen signs that demand for temporary workers was particularly strong.

He said: “The new road map for Employment Rights Bill allows full and honest consultation on how new rules will shape and gives breathing space to embattled business.”

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