Britain’s jobs market lost momentum in April as the Iran conflict heightened recruiter caution. The monthly Report on Jobs, released on Monday by KPMG and the Recruitment and Employment Confederation (REC), highlighted a notable downturn in permanent job placements, marking the fastest decline since January.
According to the survey, permanent placements dropped to 47.5 in April, down from 49.2 in March. This shift comes after a period where employers reported signs of recovery, suggesting that the recent geopolitical tensions have disrupted this positive trend. Jon Holt, the group chief executive of KPMG, noted, “The small signs of recovery in the jobs market may have been disrupted in April by the uncertainty stemming from the conflict in Iran.”
Temporary staff hiring, on the other hand, saw a slight increase, rising to 50.4 from 48.4 as companies opted for short-term solutions amid the prevailing uncertainty. This trend indicates a cautious approach from employers, who seem to prefer the flexibility that temporary roles offer during unstable times.
Interestingly, the availability of candidates for permanent positions increased slightly faster than those seeking temporary work, reflecting a changing dynamic in the job market. Additionally, vacancies have been on a downward trajectory for 30 consecutive months, although the rate of decline has slowed to the most gradual pace observed in nearly a year.
The survey gathered insights from around 400 recruitment agencies between April 9 and April 24, providing a timely snapshot of the current hiring landscape. In a separate survey conducted by BDO, findings revealed that companies are increasingly cautious about hiring, with their employment index reflecting trends in hiring intentions hitting its lowest level in 15 years.
