Economic uncertainty causing hiring to slow, report finds

13 Jul 2023

A report published by the Recruitment and Employment Confederation (REC) has suggested that economic uncertainty is causing hiring by UK firms to slow.

The data found that whilst the number of people seeking work has risen, British businesses are slowing down on hiring as a result of the current turbulent economic climate.

According to the REC, the number of candidates for new jobs rose at its sharpest rate in June. However, the research also showed the number of individuals who found permanent jobs via recruitment agencies fell and wage growth stagnated in June.

Neil Carberry, Chief Executive of the REC, said: 'There are still broad skills shortages, with accountancy, construction, teaching and nursing among those sectors struggling to find and retain workers.

'The growth in vacancies for temps and permanent staff in hotels and catering and blue-collar jobs, and for temp positions in retail, suggest businesses anticipate that people are still prepared to spend their wages on goods and services despite the fall in their purchasing power and the wider cost of living crisis.'