A key hiring measure in a monthly report dropped significantly, as soft demand for workers amid global economic uncertainty continues for UK companies.
The UK Report on Jobs from KPMG and the Recruitment and Employment Confederation (REC) attributed hiring cutbacks to reduced business confidence and cost concerns.
The Permanent Placements Index, the report’s main hiring gauge, fell to 39.1 in June from 44.2 in May — the steepest rate of reduction since August. Indices with a reading above 50 indicate an overall increase and below 50 an overall decrease compared with the previous month.
In June, staff availability in the UK rose at the fastest pace in over 4½ years in the survey. The index measuring staff availability for permanent roles increased to 66.3 from 63.5 in May.
The Temporary Billings Index also remained in negative territory, falling from 47.1 in May to 45.5 in June. “The rate of contraction was the quickest recorded since February and sharp overall,” the report said. In the report, recruiters attributed the decline to a “slowdown in market conditions” and a reduced demand for workers.
Global headwinds will continue to affect the overall economic outlook into the second half of 2025, according to Jon Holt, group CEO and senior partner at KPMG UK. In the report, Holt added that government commitments in housebuilding and infrastructure were showing a small but encouraging increase in permanent vacancies in related sectors.
Additionally, the survey showed a slowdown in pay growth, affecting permanent salaries and temporary wages.
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