London sees sharpest fall in permanent jobs in almost three years in April, survey shows
The number of people starting permanent jobs in London fell at its sharpest rate for almost three years in April, new analysis has revealed, in a sign that the capital’s jobs boom may be slowing.
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Starting salary inflation for permanent positions cooled to a nine-month low in April, although wages still increased, according to the latest UK report on jobs from KPMG and the Recruitment and Employment Confederation (REC).
Candidate shortages due to record-low unemployment levels combined with lower demand for permanent workers to produce a fall in staff appointments in the capital.
Recruitment consultants attributed the reduction in permanent positions to caution around Brexit among firms and employees, as well as candidate shortages.
Many economists have suggested that the Brexit impasse was in fact boosting employment, as companies chose to make reversible hiring decisions rather than larger, long-term investments in things like machinery and technology.
London was the only region to see a fall in demand for permanent workers in April, with growth evident in the other three English regions of the north, south, and midlands.
The London report is compiled for KPMG and the REC by data service firm IHS Markit from responses to questionnaires sent to recruitment companies.
James Stewart, vice chair at KPMG, said: “This report shows how the UK jobs market has seized up, with both employers and candidates waiting to see which direction Brexit is going to go in.”
“On the supply side, a high rate of employment and the apprehension of potential candidates means there just aren’t a lot of suitably skilled people out there to hire anyway,” he said.
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Stewart added: “This is an increasing problem for firms in technology, health, and engineering who are experiencing a skills gap.”