UK hiring falls again; starting salaries see weakest rise in over 3 years

Economic uncertainty in the UK continues to affect business confidence, according to a monthly report from KPMG and the Recruitment and Employment Confederation.

Hiring in the UK fell the most since March, and the rate of increase for starting salaries was the lowest since early 2021, according to a monthly report.

In the UK Report on Jobs from KPMG and the Recruitment and Employment Confederation (REC), the report’s main hiring measure, the Permanent Placements Index, fell to 44.1 in October from 44.9 in September. Indices with a reading above 50 indicate an overall increase and below 50 an overall decrease compared with the previous month.

Demand for staff declined for the 12th consecutive month.

“Firms need to be persuaded to invest, with recent changes to [National Insurance] thresholds, the minimum wage, and prospective changes to employment law all causing concern,” Neil Carberry, the REC’s chief executive, said in a news release. “[They] will be looking for the government to deliver a clear, stable growth plan and detailed regulatory changes that enable firms rather than put them off over the next few months.”

The Permanent Salaries Index fell for the fourth consecutive month, to 52.5. It had been 57.1 in June.

S&P Global compiles the report from the responses of about 400 UK recruitment and employment consultancies.

— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.

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