UK Job Placements Decline Sharply On Weaker Confidence & Budget Pressures
(RTTNews) - UK job placements logged a steep decline in July due to weaker confidence around the economic outlook and rising employment costs, monthly data from S&P Global showed Monday.
Permanent staff appointments declined sharply in July and temp billings registered its biggest fall in five months, the KPMG/REC Report on Jobs said.
Starting salary inflation fell to its lowest since March 2021. Respondents cited that there were reports of some companies offering greater salaries for highly skilled candidates, while other panellists commented that lower demand for staff, greater candidate availability and concerns around costs weighed on growth.
At the same time, temp pay inflation also eased in July with wages rising at a marginal pace that was the slowest in five months. Data showed that availability of staff increased further but the rate of expansion softened slightly from June. Permanent staff supply rose at a quicker pace than for temporary workers.
Demand for staff continued to decrease in July. The rate of decrease was the most pronounced in three months and rapid overall. Permanent vacancies dropped at the fastest pace since February, while demand for temp workers decreased at the steepest rate since April.
KPMG Group Chief Executive and UK Senior Partner Jon Holt said the labor market cooled in July as chief execs held back from increasing their recruitment budgets.
"Economic uncertainty, the complexities of AI adoption and global headwinds are all weighing on business planning," Holt added.
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