Hiring activity across the UK remained subdued in May, according to the latest KPMG and REC, UK Report on Jobs survey, compiled by S&P Global. Recruitment consultants indicated that caution around the outlook and delayed decision-making led to a further marked fall in permanent staff appointments, while temp billings rose only slightly. At the same time, vacancies expanded at the second-softest rate since early 2021.
The higher cost of living and shortages of skilled candidates meanwhile drove sustained increases in starting pay for both permanent and temporary staff. However, rates of pay growth softened since April amid a further improvement in overall candidate numbers. Aggregate staff supply expanded at the quickest rate since December 2020, which was often attributed to redundancies.