July saw the slowest increase in the number of permanent jobs filled for 17 months. In fact, according to a report, hiring in the UK has slowed amidst uncertainty over the economy.
KPMG said recruiters are becoming more tentative over hiring new staff. The consultancy added that ongoing skills shortages, a drop in foreign workers and hesitancy from candidates to move jobs had all led to a tighter supply of suitable staff.
The slowing down of the hiring spree that followed the pandemic comes as the Bank of England warned the UK will fall into recession in the final quarter of this year. The bank raised interest rates from 1.25% to 1.75%, in a bid to curb soaring prices.
The jobs report by KPMG and the Recruitment and Employment Confederation suggested rising operating costs and uncertainty over the UK's economic outlook is leading some firms to put the brakes on recruitment, at least for permanent roles.
But the soaring cost of living and tougher competition for a smaller pool of qualified candidates has also meant that the rate of starting pay continued to rise in July.
The Bank of England said it expects the economy to shrink in the final three months of this year, and keep shrinking until the end of 2023, signalling the longest downturn for the UK economy since the 2008 financial crisis.
