In May, the UK saw a decline in permanent staff appointments for the twentieth consecutive month, though the rate of decline was the slowest since March 2023, according to a report by S&P Global released on Monday.
Recruitment consultants attributed the fall in recruitment activity to delayed decision-making and reduced demand among companies, as highlighted in the KPMG/REC Report on Jobs.
Temporary billings also saw a decline in May, albeit the smallest decrease since January. Data indicated that starting salaries for candidates rose in May, spurred by a fiercely competitive market and a ripple effect from increases in the national minimum and living wages.
Despite these gains, both permanent and temporary staff wages grew at a slightly slower rate compared to April.
May marked the seventh consecutive month of reduced demand for staff, led exclusively by a decline in demand for permanent workers, while demand for temporary staff remained unchanged.
Additionally, May experienced a sharp rise in staff availability, the most significant growth since December 2020. This increase was due to redundancies, higher unemployment, and reduced demand for staff.
Jon Holt, Chief Executive and Senior Partner of KPMG in the UK, stated, "We know our labour market is resilient."
He added, "The big picture is that unemployment is historically low, and the ease of filling vacancies has returned to pre-pandemic levels."
Holt expressed optimism for an improved economic outlook in the second half of 2024, citing the day's data, anticipated interest rate cuts, easing inflation, and increased consumer confidence over the summer.
