Uncertain Economic Outlook, High Inflation Weigh On UK Job Placements

(RTTNews) - Ongoing economic uncertainty coupled with the cost pressures forced the British employers to take a more cautious approach on staff hiring, a survey report compiled by S&P Global showed Wednesday.

Permanent staff appointments declined for the fourth consecutive month, albeit at a weaker pace as firms often preferred to take temporary staff to fill vacancies, the KPMG/REC Report on Jobs, based on the responses of around 400 consultancy firms, revealed. As a result, temporary billings grew the most since last September.

There was a strong increase in demand for staff, with overall vacancies rising at the fastest rate in three months. Temp vacancies grew at a stronger rate than permanent staff demand.

Starting salaries continued to increase sharply in January but the pace of growth softened to the weakest in 21 months. On the other hand, the temp pay inflation rose to a four-month high.

The downturn in total candidate supply moderated again in January. The rate of contraction was the softest seen since March 2021. A weaker fall in permanent labor supply helped to offset a faster decline in temp candidate numbers.

Recruiters cited the uncertain economic climate, concerns over job security and generally tight labor market conditions limited the availability of workers.

January's recruitment activity suggests that speculation about a shallower economic downturn may be justified, Neil Carberry, REC chief executive, said.

"The need to address the fundamental challenges our labor market faces has not changed with the turning of the year," Carberry added.

Official data published last month showed that the unemployment rate held steady at 3.7 percent in the three months to November.