Overview
- Monday's KPMG/REC Report on Jobs found permanent placements fell for the 44th consecutive month and at the fastest pace since July 2025.
- Recruiters reported an increase in short-term hiring with the temporary-staff index rising to 52.2 as employers choose flexibility over long-term contracts.
- Total vacancies dropped sharply while availability of candidates rose, a pattern recruiters linked to rising redundancies and weaker demand for permanent roles.
- KPMG, the REC and business leaders pointed to higher costs and uncertainty from the Iran war and recent UK policy and regulatory changes as reasons firms are delaying permanent hires.
- The survey reinforces outside warnings, including an OECD forecast that unemployment could approach about 5.5% this year, signaling weaker labour-market momentum.