UK Job Market Plunges: Hiring Drops, Wage Growth Slows

Hiring of new permanent staff in the UK fell at the fastest pace in over three years, according to a survey by the Recruitment and Employment Confederation and KPMG. Concerns about the economic outlook contributed to the decline, signaling a tougher job market for seekers. The survey also showed the weakest growth in temporary staff hiring in nine months, partly due to workers seeking the security of permanent roles. While starting pay for new permanent staff rose sharply, wage growth was the slowest since April 2021. The labor market is loosening, which is welcomed by the Bank of England, but rising interest rates, tough trading conditions, and weak demand are impacting hiring intentions and business confidence.