Pay growth eases as UK starting salary inflation drops to two-and-a-half-year low
According to the report, companies remained hesitant to commit to new permanent hires due to ongoing economic uncertainty and efforts to control costs.
The latest KPMG and REC ‘UK Report on Jobs' survey compiled by S&P Global also found that the overall availability of candidates improved again, with both permanent and temporary labour supply increasing at historically strong rates.
Total vacancies also fell marginally over the month, marking the first fall in overall demand for staff since February 2021. The survey revealed a slight reduction in permanent vacancies, while demand growth for temporary staff moderated to a four-month low.
UK unemployment rate edges up as wage growth catches up with inflation
According to the report, companies remained hesitant to commit to new permanent hires due to ongoing economic uncertainty and efforts to control costs.
Claire Warnes, partner at KPMG, said the labour market is starting to look «slightly precarious» again, noting that a concerning feature of this month's data is that demand for staff is losing momentum.
«Employers are clearly nervous due to the long-term economic uncertainty and budget constraints that are impacting businesses everywhere. This in turn is leading to a continued reliance on temporary staff,» she said.
Bank of England holds rates at 5.25% in 5-4 split vote
Neil Carberry, REC chief executive, added: «Employers tell us they are feeling better about themselves as the year moves on, and today's data does suggest the possibility of a turnaround in hiring over the next few months.»
The Bank of England, which watches the KMPG/REC jobs report closely, opted to hold interest rates at the current level of 5.25% in its September meeting. The central bank
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