The UK labour market showed further signs of weakness in August 2024, with recruitment for both permanent and temporary job placements continuing to fall, according to the latest survey from KPMG and the Recruitment and Employment Confederation (REC).
The report cited economic uncertainty, inflationary pressures, and a focus on cost control as the main factors behind the ongoing hiring slowdown.
Permanent job placements registered their softest decline since April 2023, while temporary job appointments fell for the 12th consecutive month.
On a positive note, candidate availability has improved, with more job seekers entering the market due to layoffs and people actively searching for new opportunities.
Despite this, wage growth remains strong, though it has started to ease, particularly for permanent roles.
"Employers are still hiring, but are being much more cautious and focused on cost control," said Claire Warnes, head of education, skills, and productivity at KPMG UK.
“Despite the stability of a new government and easing inflationary pressures, employer confidence to recruit has not yet returned, leading to delays with permanent hiring and even a small contraction in the temporary market as worker contracts are not renewed,” added Jon Holt, chief executive and senior partner of KPMG UK.