UK Job Market Weakens In December

(RTTNews) - UK permanent placements as well as vacancies declined at faster rates in December as companies evaluate the impact of tax hikes announced in the October budget, a report compiled by S&P Global showed on Thursday.

Permanent placements declined the most since August 2023, the KPMG/REC Report on Jobs survey showed.

Amid growing cost consciousness amongst firms especially in the context of the recent government Budget and the announced increase in employee National Insurance contributions, demand for candidates declined in December. Temp billings also decreased further.

However, the report showed that companies were willing to pay more for talented candidates, which helped permanent pay inflation to rise to a four-month high. Temp pay rates rose moderately in December.

Vacancies decreased further since November to the steepest in well over four years. The fall in temp staff was the greatest in four-and-a-half years.

Meanwhile, availability of staff registered the sharpest increase since June. The upturn in growth was primarily driven by the permanent staff category, although temp worker availability also rose sharply at the end of 2024.

"Recruitment is one to watch in early 2025 because it is one of the earliest indicators of a broader economic recovery, with any sign of a turn hugely significant with the sector contributing a massive £44.4bn to the UK economy in 2023," REC Chief Executive Neil Carberry said.