Vacancy numbers fell at an accelerated pace in November, the largest drop recorded in over four years, according to a monthly report on UK jobs.
The latest data shows a steep decline in demand for permanent workers, as reported in the UK Report on Jobs from KPMG and the Recruitment and Employment Confederation (REC), following lingering uncertainty in the aftermath of the UK government’s Autumn Budget.
The report’s Permanent Placements Index revealed an accelerated decline in appointments from 44.1 in October to 40.7 in November. The report said the government’s budget has prompted many employers to reassess staffing needs.
Temporary billings declined for a fifth successive month, the report said. The rate of contraction has eased compared with rates recorded in September and October. The index reading for temporary billings was 47.7 last month. Readings below 50 signal a decline compared with the previous month.
As demand falls sharply, the index for permanent vacancies saw the fastest drop in more than four years, the report said, declining from 46.1 in October to 43.9 — the steepest rate of contraction recorded by the report since August 2020.
Neil Carberry, the REC’s chief executive, said in a news release that companies are likely to rely more on temporary workers while they manage the current uncertainty.
As organisations continue to limit recruitment, the index reading for permanent staff availability rose at the fastest rate in three months, from 59.1 in October to 59.8 in November, the report said.
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