Permanent staff appointments fell sharply in January, after a mild upturn in December, according to the latest KPMG and REC, UK Report on Jobs survey. The reduction was driven by the reintroduction of national lockdown measures amid a rise in coronavirus disease 2019 (COVID-19) cases. At the same time, greater uncertainty over the outlook drove a further marked increase in temp billings.
The resurgence of the virus also led to a renewed fall in demand for permanent staff, while growth in short-term vacancies moderated. Pay trends meanwhile weakened, with recruiters registering mild reductions in starting salaries and temp wages. Reports of redundancies related to COVID-19 led to a sustained increase in staff availability. However, the upturn was the softest seen for ten months, with recruiters indicating that a number of workers were reluctant to move roles in the current economic climate.