The Report on Jobs, provided by KPMG and REC, shows an original survey data provided by recruitment consultancies and employers to provide the first indication each month of labour market trends. For the month of September, recruitment consultancies report a slow in the hiring and candidate shortages. The report shows a weakest rises in permanent places and temporary billings for 19 months. Considering the economic uncertainty heightens with the rising inflation and interest rates, we're not surprised to see employers’ confidence and job postings cooling-off with the current economic climate.
Overall vacancy marks the slowest rise in demand for staff since February 2021. Weaker increases were signalled for both permanent and temporary vacancies, with the former noting the softer rate of expansion.
Commenting on the latest survey results, Claire Warnes, Head of Education, Skills and Productivity at KPMG UK, said: “The UK jobs market remained tight in September, with candidate shortages impacting recruiters’ abilities to fill jobs. Deepening economic uncertainty has also meant that workers are choosing to stay put in current roles, rather than apply for new roles, leading to a moderation in the overall rate of vacancy growth.”
Candidate supply continues to fall at historically sharp pace. A key factor weighing on candidate numbers was a greater hesitancy among people to apply for new roles, driven by fears over the economic outlook. Neil Carberry, Chief Executive of the REC, said: “The challenges we see in today’s data reflects the underlying shortage of Labour the UK faces. With unemployment at record lows, pay continues to rise for both temporary and permanent workers starting new jobs, and activity levels across the recruitment and staffing industry remain high. While any economic slowdown this winter will affect the market, the extent of shortages mean that hiring will remain a focus for employers.”