Financial News: UK Employers Reduce Hiring Amid Uncertain Outlook, Budget

UK Employers Reduce Hiring Amid Uncertain Outlook, Budget Constraints

(RTTNews) - UK companies reduced their hiring activity further in June amid uncertainty over the business outlook and budget constraints, monthly data from S&P Global revealed Tuesday.

Permanent staff appointments declined at the fastest pace in nearly two years in June and temp billings dropped the most since February, the KPMG/REC Report on Jobs said. Companies pulled back on hiring due to reduced confidence and worries about costs.

Meanwhile, the availability of staff increased amid reports of redundancies and weaker demand for workers. The supply of permanent labor grew at a slightly faster rate than that seen for temporary candidates, in each case the rate of growth was the sharpest registered since November 2020.

Total demand for workers continued to fall in June, reflecting a steeper reduction in permanent vacancies, as demand for short-term staff dropped at the slowest pace in ten months. Further, salaries and temp wages increased moderately with rates of inflation notably weaker than their historical trends.

The report showed that weak demand, tighter client budgets and improvements in candidate supply weighed on pay growth. Starting salaries and temp wages increased moderately. KPMG Group Chief Executive and UK Senior Partner Jon Holt said, "Ongoing geopolitical turbulence and the threat of rising costs, alongside the promise of technology efficiencies, mean companies continue to wait and see with their hiring."

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