A new survey has revealed that the number of candidates available for works has increased to the fastest rate in more than four years, according to recruiters.
The survey, conducted by KPMG and the Confederation of Recruitment and Employment (REC), indicated an additional reduction in the recruitment activity by the companies in May.
The permanent locations decreased last month, while the availability of candidates increased to the fastest rate in almost four and a half years.
The report, which is based on data from 400 recruitment agencies, cited layoffs and less job opportunities as contributing factors.
Jon Holt, executive director of the KPMG group, commented on the data: “May's data show very few changes. Employers are still braking the hiring, which meant last month that the number of employment applicants increased at the most important rate from 2020”.
“The first half of this year has been full of uncertainty for companies that are still trying to navigate for cost pressures, technological advances and global risks.”
Neil Carberry, Executive Director of REC, said: “The most encouraging signals in temperature invoices, vacancies and the stabilization of private sector demand offer an optimism measure as we advance in the second half of the year.
“There are early promises signs, particularly in Midlands, which saw their first increase in permanent locations in a year and an increase in billings after four months. Meanwhile, the recession in Billings Billings has decreased even more in London and the north of England.
“With the imminent industrial strategy, companies seek more than talking about renewal, they want a clear plan for an economic rebirth.
“One that recognizes the central role of the good workforce policy, beyond labor rights.”
The latest data from the Office of National Statistics (ONS) indicated a slowdown in salary growth together with an increase in unemployment, indicating a cooling labor market.
The average growth of regular profits decreased to 5.6 percent in the three months to March, the lowest from November 2024, according to the statistics agency. However, salaries continue to exceed inflation, increasing 2.6 percent when they fit for the consumer price index.
Experts have expressed concern about the figures, with the resolution foundation attributing the situation to recent fiscal policies.
Nye Cominetti, the main economist of the group of experts, said: “While the recent data of the United Kingdom on growth has been encouraging, the image of the labor market is a great concern.”
“The recent increase in employer's national insurance may have accelerated this slowdown, with the amount of hospitality jobs that fell particularly since the tax increase in April came into force.”
