UK Permanent Hiring Slumps in April as Firms Favour Temp Staff

Overview

• The KPMG/REC survey for April showed permanent placements at 47.5, a clear contraction, while temporary billings rose to 50.4.
• Executives delayed long-term hires due to the Iran conflict and higher costs, though London and northern England still saw permanent placements rise to a regional reading of 54.9.
• Staff availability climbed to 61.0 as redundancies increased, which loosened the market and helped cool broad pay growth even as starting salaries rose.
• ONS data put vacancies at 711,000 in the first quarter, the lowest in nearly five years, with a steeper fall for private employers than for the public sector.
• The ITEM Club now forecasts a net loss of 163,000 jobs in 2026, including about 25,000 in London as retail and hospitality struggle with weaker demand and rising costs.