A recent survey by the Recruitment and Employment Confederation (REC) indicates a potential recovery in the UK’s recruitment market. In May, the decline in permanent hiring was the smallest in 14 months, and temporary staff billings dropped in UK job market by the least since January.
REC Chief Executive Neil Carberry noted improvements across key measures, suggesting a rebound in the jobs market. The survey, often reflecting a weaker labour market than official data, showed a 6% annual wage growth in Q1 2024.
The upcoming July 4 national election and expected Bank of England (BoE) interest rate cuts may reduce employer hesitancy in hiring. Pay rates for permanent staff continued to rise, and vacancies fell at the slowest rate in a seven-month downturn. Staff availability increased significantly, driven by redundancies, higher unemployment, and reduced demand. The BoE is closely monitoring the labour market to determine when to lower borrowing costs, aiming to manage inflation pressures effectively.
