Demand for jobs waned as business confidence dropped in November, sending vacancies down by the sharpest rate since the pandemic.
KPMG and the Recruitment and Employment Confederation on Monday highlighted a “sharp and accelerated” drop in demand for staff through the month.
Their permanent placement index, measuring whether businesses expanded or trimmed headcount, fell from 44.1 to 40.7.
Vacancies faced the steepest drop since August 2020 as a result, as November also brought the 13th successive monthly decline for staff demand.
Accountancy BDO separately reported business confidence had fallen to its lowest level since January 2023 in November, while its output index entered contraction territory.
“Businesses are having to weigh up the prospect of increasing employee costs following the Budget, which has led to an accelerated slowdown in hiring activity across the board,” KPMG chief executive Jon Holt said.
He added the prospect of further rate cuts and government investment pledges could boost business confidence and help to stabilise the job market in the months ahead.