A jump in redundancies has triggered the biggest surge in jobseekers for two and a half years as the employment market stutters, according to a closely watched industry report.
The latest KPMG and REC UK Report on Jobs survey, shows uncertainty over the economic outlook continues to weigh on hiring decisions.
Permanent placements fell solidly, while growth of temp billings remained mild overall.
Total vacancies meanwhile expanded at the slowest pace in 28 months and the slowdown in recruitment activity and reports of redundancies drove a steep and accelerated rise in overall candidate availability.
The supply of both permanent and temporary workers increased at the sharpest rates since December 2020.
At the same time, pay pressures remained marked but showed signs of cooling, with rates of both starting salary and temp wage inflation softening to their weakest in over two years in June.
Claire Warnes at KPMG UK, said: “The sharp upturn in candidate availability this month – the highest for two and a half years – is a big concern for the economy reflecting the effects of a sustained slowdown in recruitment along with increasing redundancies across many sectors.”