UK hiring slows down as recession looms
July saw the slowest increase in the number of filled permanent jobs in the United Kingdom for 17 months as hiring activities in most companies are slowing down.
According to professional services network KPMG, recruiters are becoming more tentative over hiring new staff due to economic uncertainties.
In recent reports, the Bank of England warned that the UK will fall into recession in the final quarter of this year. The bank raised interest rates from 1.25% to 1.75%, in a bid to curb soaring prices.
KPMG said KPMG Partner and Head of Education, Skills, and Productivity Claire Warnes said that the trend of uncertainty in the UK jobs market over the last few months will continue.
“Employers are rightly hesitant about their hiring plans… So, a focus on up-skilling existing workers and attracting talent remains absolutely essential for UK business to play its part in driving forward the economy,” she added.
Moreover, ongoing skills shortages, a drop in foreign workers, and hesitancy from candidates to move jobs had all led to a tighter supply of suitable staff.
The jobs report by KPMG and the Recruitment and Employment Confederation suggested rising operating costs and uncertainty over the UK’s economic outlook are leading some firms to put the brakes on recruitment, at least for permanent roles.
