New data reveals that job vacancies in the UK have experienced the slowest rate of growth in 28 months, reflecting ongoing economic uncertainty and its impact on hiring. The latest report on

jobs from KPMG and the Recruitment & Employment Confederation highlights that while candidate availability has improved significantly as more Britons reenter the job market, firms are hesitant to increase their workforce.

The survey, based on information gathered from approximately 400 recruitment and employment consultancies, indicates that companies remained cautious about taking on additional staff in June. Permanent staff appointments witnessed a notable decline, although the rate of contraction slightly eased compared to May's figures, which had set a two-and-a-half-year record. Temporary appointments showed a slight improvement compared to the previous month.

The data also reveals that overall job vacancies continued to increase, albeit at a slower pace, reaching the lowest rise since March 2021. Additionally, growth in starting pay moderated to its weakest level since April of that year.

Claire Warnes, Partner for Skills and Productivity at KPMG UK, expressed concern over the sharp rise in candidate availability, the highest observed in two-and-a-half years. She noted the significant impact this has on the economy, signaling a sustained slowdown in recruitment and a rise in redundancies across various sectors. Warnes highlighted that employers are increasingly opting for temporary hires due to ongoing economic uncertainty. Despite these challenges, the labor market has shown resilience, with a notable demand for skilled workers in both permanent and temporary positions across various sectors.

Neil Carberry, Chief Executive of REC, commented on the situation, pointing out the potential repetition of a hiring pattern seen in June, with a further easing in permanent billings and continued reliance on temporary staff amid uncertainties. He highlighted that the growth in temporary and permanent vacancies in the hotel and catering sectors, as well as blue-collar jobs, along with temporary positions in retail, suggests that businesses anticipate continued consumer spending on goods and services despite the decline in purchasing power and the broader cost-of-living crisis. Photo by Phil Whitehouse, Wikimedia commons.