A new survey has revealed that the number of candidates available for jobs has increased at the fastest rate in over four years, according to recruiters.
The survey, conducted by KPMG and the Recruitment and Employment Confederation (REC), indicated a further reduction in recruitment activity by companies in May.
Permanent placements decreased last month, while the availability of candidates increased at the quickest rate in nearly four-and-a-half years.
The report, which is based on data from 400 recruitment agencies, cited redundancies and fewer job opportunities as contributing factors.
Jon Holt, group chief executive at KPMG, commented on the data: “May’s data shows very little change. Employers are still holding back on hiring, which meant last month the number of jobseekers increased at the steepest rate since 2020.”
“The first half of this year has been full of uncertainty for businesses who are still trying to navigate cost pressures, technology advancements and global risks.”
Neil Carberry, REC chief executive, said: “More encouraging signs in temp billings, vacancies and stabilising private sector demand offer a measure of optimism as we head into the second half of the year.
“There are early signs of promise, particularly in the Midlands, which saw its first increase in permanent placements in a year and a rise in billings after four months. Meanwhile, the downturn in temporary billings has eased further in London and the north of England.
“With the industrial strategy imminent, businesses are looking for more than talk of renewal, they want a clear plan for an economic revival.
“One that acknowledges the central role of good workforce policy – beyond just employment rights.”
The latest data from the Office for National Statistics (ONS) indicated a slowdown in wage growth coupled with a rise in unemployment, signalling a cooling labour market.
Average regular earnings growth eased to 5.6 per cent in the three months to March, the lowest since November 2024, according to the statistics body. However, wages continue to outpace inflation, rising 2.6 per cent when adjusted for the Consumer Prices Index.
Experts have expressed concern over the figures, with the Resolution Foundation attributing the situation to recent tax policies.
Nye Cominetti, Principal Economist at the think tank, said: “While recent UK data on growth has been encouraging, the labour market picture is a major worry.”
“The recent rise in employer National Insurance may have accelerated this slowdown, with the number of hospitality jobs falling particularly sharply since the tax rise came into effect in April.”
