Vacancies shrink at fastest pace since pandemic peak as Autumn Budget lifts hiring costs
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Vacancies declined at the fastest pace in over four years in November amid the fallout from the Autumn Budget, new hiring data suggests. KPMG and the Recruitment and Employment Confederation, a trade body for recruiters, said its index of demand for employees shrank from 46.1 in October to 43.9 last month, the worst reading since August 2020. Any reading under 50 denotes a contraction in hiring.
The report identified a 'further deterioration' of conditions in the UK jobs market last month as the Budget made many firms more reluctant to take on new hires. Chancellor Rachel Reeves announced in late October that the National Minimum Wage and employer's National Insurance contributions would rise from next April.
Many companies and trade organisations have warned the measures will lead to higher prices, store closures, and job cuts. Neil Carberry, chief executive of REC, said: 'It should be a surprise to no-one that firms took the time to re-assess their hiring needs in November after a tough Budget for employers.'.
Not recruiting: KPMG and the REC said the UK labour market suffered a 'further deterioration' of conditions last month as the Budget made many firms more reluctant to take on new hires. KPMG and REC's latest data showed permanent placements contracted at their steepest pace for 15 months, with the South of England registering the fastest drop of any region.
