UK job vacancies have shrunk at the quickest rate for three years as companies delay hiring due to uncertainty about the economy.
Ahead of the official UK unemployment report out tomorrow, a survey of recruitment companies for the KPMG and REC UK report on jobs showed that this decline was primarily driven by a fall in permanent staff vacancies.
“The impasse between economic uncertainty and hiring decisions continued into February. Chief executives tell me they are ready to invest and grow - including taking on new staff - yet the reality is they’re being held back by the prospect of weak demand," said Jon Holt, CEO and senior partner of KPMG in the UK.
Starting salaries and temp wages increased but at slower rates.
The report suggested the slowdown in hiring and redundancies drove further marked increases in candidate availability, which reduced the upward pressure on pay.
Pay for new starters in permanent roles increased at the slowest rate since March 2021, while temp pay growth was among the weakest seen over the past three years.
ONS data due tomorrow is tipped to show people in work holding up well given the mixed economic backdrop.
But REC chief Neil Carberry said the survey "shows the market slowing" with "a concerning increase in the decline in temporary billings, to the lowest performance since the middle of 2020".
Given recent news about GDP dropping, he said the survey results are not a surprise, "but it is certainly still quite resilient by comparison with previous recessions".
He said the temporary labour market - "the unsung hero of the economic uncertainty of recent years" - will need commitment from politicians in the general election.