UK hiring boom slows as labour shortages and economic uncertainty scupper recruitment efforts
The UK’s hiring boom is showing signs of coming to an end, according to new research from KPMG, which show the number new hires grew at its slowest rate in 16-months due to a lack of candidates and wider economic uncertainty.
The fast-paced growth in the number of new hires has dropped off significantly over the past three months, in plummeting to its lowest levels since March 2021.
Neil Carberry, chief executive of the Recruitment & Employment Confederation (REC), said the figures show the UK has likely passed “the peak of the post-pandemic hiring spree.”
The drop off comes as companies have taken a more cautious approach to hiring, in the face of the current economic climate, the survey of 400 UK recruitment firms showed.
UK employers also struggled to find the right candidates to fill positions, as the uncertain economic outlook made potential new hires more reluctant to switch positions.
The availability of new staff also continued to fall – following sharp declines over the past three months – as low levels unemployment, strong demand for staff, and a drop in the number of foreign workers resulted in a smaller pool of labour.
In turn, the lack of available candidates saw pay continue to rise, as employers were forced to offer markedly higher salaries in order to attract new hires.