KPMG, REC data | UK job market downturn persists as hiring slows further

The UK labour market continued to deteriorate at the start of 2025, as recruitment activity declined amid rising redundancies and business uncertainty, the latest KPMG and REC UK Report on Jobs survey has revealed.

Compiled by S&P Global, the report signalled a further drop in both permanent and temporary placements in January, extending the contraction in hiring to 28 months. The findings suggest employers remain hesitant to recruit amid concerns over rising employment costs and weak business confidence.