KPMG & REC report | Big drop in permanent hires as firms lose confidence in economy

Hiring activity across the UK continues to be dampened by a weak economic outlook and reduced confidence among businesses, according to the latest KPMG and REC, UK Report on Jobs survey, compiled by S&P Global.

Permanent placements contracted at the quickest rate for just over three years, while temp billings growth weakened notably from June.

The overall availability of staff meanwhile rose at a substantial pace amid the slowdown in recruitment and reports of redundancies. Notably, the latest upturn in total labour supply was the steepest recorded since October 2009 when excluding the pandemic period. While there were signs of pay pressures moderating again in July, permanent salaries continued to rise at a sharp pace overall. Total vacancy growth meanwhile slowed further, hitting a 29-month low in July.

The report is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies.