KPMG, REC data | Jobs market downturn continues as hiring slows again

The UK labour market continued to weaken midway through the first quarter of 2025, with businesses holding back on recruitment amid economic uncertainty and rising payroll costs, the latest KPMG and REC UK Report on Jobs survey has found.

Compiled by S&P Global, the report signalled a further drop in both permanent and temporary placements in February. While the pace of decline eased slightly from January, hiring activity remained constrained as employers paused or scaled back hiring plans.

Hiring slowdown persists, but decline eases

The latest KPMG/REC Report on Jobs survey showed that permanent staff appointments fell for the twenty-ninth consecutive month in February. While the rate of decline softened compared to previous months, firms remained cautious due to rising employment costs and concerns over economic growth.

Temporary billings also continued to contract, albeit at a slower rate than January’s 55-month record low.