Permanent job vacancies in UK shrink at fastest pace for four years
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Job market data deepens sense of gloom enveloping UK plc as analysts plan close look at effects of NICs rise on hiring. Vacancies for permanent jobs in the UK declined at their fastest pace for four years last month, according to a new survey that adds to the gloomy economic mood.
Amid febrile markets and weak economic data, the monthly jobs report from the consultancy KPMG and the recruitment firm REC shows many firms reluctant to hire. The employer survey suggested vacancies for permanent roles had declined at the fastest pace since August 2020, when the UK was in the grip of the Covid pandemic. Temporary vacancies also fell in December.
The labour market was slowing for much of 2024. December was the 14th month in which the jobs report registered a decline in overall vacancies. Among permanent roles, the fastest decline in vacancies was seen in the executive/professional and the IT and computing sectors.
Some employers, particularly in hospitality and retail, have said the government’s £25bn increase in national insurance contributions (NICs), which will come into force in April, will depress hiring. Jon Holt, the KPMG group chief executive, said: “As we start the new year, it’s a muted one for the UK jobs market. The hiring market could continue to show signs of caution in the short term, as businesses pause to take stock of higher employment costs, a more gradual pace of interest rate cuts and rising inflation.”.
