Recruitment activity continued to slow in the UK in May, leading to the highest share of job seekers since late 2020, according to a monthly report.
The UK Report on Jobs from KPMG and the Recruitment and Employment Confederation (REC) showed an acceleration of staff availability rates. Respondents in the survey cited redundancies and fewer job opportunities as the catalyst for the rise in job seekers.
The report’s main hiring index, the Permanent Placements Index, fell from 44.7 in April to 44.2 in May. Indices with a reading above 50 indicate an overall increase and below 50 an overall decrease compared with the previous month.
Temporary billings dropped again but at the softest rate in six months, the report said. The Temporary Billings Index remained below 50 but increased from 46.3 in April to 47.1 in May. According to respondents, low business confidence and budgetary constraints continued to weaken demand for temporary staff.
Vacancies fell again but at the slowest pace since September last year.
The seasonally adjusted Total Vacancies Index rose from 43.1 in April to 46.6 in May, reflecting a sharp decline in demand for both permanent and temporary staff in the public sector compared to a modest drop for those positions in the private sector.
Consequently, the UK experienced the sharpest rise in job seekers in four and a half years.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.