KPMG-REC report points to further reduction in UK recruitment in May

Permanent placements fell at a slightly sharper rate, but the decline in billing practices related to temporary or contract workers (temp billings) was the slowest in six months. Concurrently, overall demand for staff fell at a notably sifter rate, the report compiled by S&P Global said.

Weaker confidence around the outlook and concerns over costs had dampened staff hiring in the country.

Candidate availability continued to rise in May, with the rate of growth the steepest since December 2020.

The rate of salary inflation in May was the quickest seen since last August. At the same time, temp wage growth improved to a one-year high.

The retail sector saw the steepest drop in vacancies.

“The first half of this year has been full of uncertainty for businesses who are still trying to navigate cost pressures, technology advancements and global risks. Business leaders will want to see how the new trading agreements with the US and EU, government spending plans and the Modern Industrial Strategy will drive forward our economic growth,” said Jon Holt, group chief executive and UK senior partner at KPMG.

KPMG is a UK-based global firm offering audit, legal, tax and advisory services. REC is the voice of the UK recruitment industry.

ALCHEMPro News Desk (DS)