Permanent and temporary labour availability rises while hiring falls

A new report has revealed that while candidate availability remains high, hiring has declined, albeit at a slower rate.

This is perhaps not unexpected, considering the ongoing uncertainty around the economic outlook, plus business costs. All of which has contributed to fewer businesses looking to hire.

These are the findings of the latest KPMG and REC UK Report on Jobs survey.

According to recruiters, the reasons given for a rise in worker availability include:

• Redundancies
• Fewer job opportunities
• Concerns over current job security

Figures also show a muted rate of pay growth for both permanent and temporary workers. On top of this, starting salaries were the weakest recorded in four and a half years, and temp wage inflation remained much slower compared to previous years.

REC Chief Executive, Neil Carberry, believes that employers are in need of a massive confidence boost that will hopefully come from the upcoming Autumn Budget.

He said, “All eyes are now on the Autumn Budget, in hope now that the Chancellor won’t do any further damage to the labour market with costs on hiring. For the economy to thrive, the Budget must recognise the need for investment in people.

“Long-term investment in skills, workforce stability, a more practical approach to the Employment Rights Bill and meaningful partnerships with employers will yield far more enduring returns than short-term fixes.”

To find out more about contracting, please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.