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Economic Uncertainty Deters Hiring in the UK & Germany

The UK experienced a hiring slowdown in the second quarter (Q2) of 2023, according to new data from KPMG and the Recruitment and Employment Confederation (REC).

This is linked to continuing economic uncertainty.

Although the UK’s inflation rate has fallen from 10% (a 40-year high) in the second half of 2022, it still remains at a troubling 7.9%, according to the Office of National Statistics. Interest rates currently sit at 5%.

KPMG and REC’s data showed that the number of vacancies climbed at the slowest pace since December 2020.

Interestingly, most of this slowdown was in permanent hires – the research found that “employers are also tending towards temporary hires, given lingering economic uncertainty”, according to Claire Warnes, partner, skills and productivity, at KPMG UK.

She added: “The sharp upturn in candidate availability this month – the highest for two and a half years – is a big concern for the economy reflecting the effects of a sustained slowdown in recruitment along with increasing redundancies across many sectors.”

Despite a slowdown in the number of vacancies across the board, this was not consistent across all sectors. Permanent vacancies rose steeply in sectors like hotels, catering and across other blue collar professions.

Source : Unleash

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