Hiring start to slow down but overall temp sector continues to grow

Recent data has shown a bit of a mixed bag when it comes to hiring activity in the UK with some sectors thriving more than others.

The latest KPMG and REC ‘UK Report on Jobs survey’, compiled by S&P Global, revealed that economic uncertainty has had an impact on hiring with permanent placements falling and temp billings rising only slightly.

Nail Carberry, REC Chief Executive, explained, “We’ve been hearing more and more about differences between sectors in hiring rates over the past few months, and today’s data really highlights this.

“While hospitality, healthcare and engineering remain strong, construction, IT and retail are all weakening. Despite the overall temporary work market continuing to grow – and permanent hiring declining from the sugar rush of 2022 – the story can vary widely across different businesses as their economic outlook remains unclear.”

Claire Warnes, Partner, Skills and Productivity at KPMG UK, added, “The jobs market remains subdued, with the latest survey results showing dampened hiring activity amid ongoing economic concerns.

“Overall vacancy growth slowed for the third month as businesses delayed hiring decisions, and permanent staff appointments fell for the eighth month in a row as many employers stick to temps.

“Businesses ready to grow can feel optimistic about an increasing pool of available candidates, which has expanded at the sharpest rate in two-and-a-half years. For job seekers there was more demand for permanent workers in the healthcare, financial and accounting sectors. And while temporary vacancy growth slowed, there are still plenty of opportunities, especially in the hotel and catering industries.”

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