UK companies still pausing on hiring due to 'subdued' market - survey

10th Mar 2025 10:26

(Sharecast News) - UK companies are still pausing hiring plan due to a "subdued" economic outlook and rising payroll costs, according to a survey published on Monday.

Consultancy KPMG and the Recruitment and Employment Confederation (REC) said a "marked" fall in permanent and temporary jobs continued in February, although the pace of decline eased.

"February data indicated faster increases in the availability of candidates for both permanent and temporary roles. Recruiters frequently attributed the upturn in staff availability to redundancies and fewer job opportunities amid a weaker economic backdrop," the survey stated.

"Overall, candidate supply increased at a sharp rate that was broadly in line with the average seen over 2024."

"At the moment, though, things are still slow as companies hold their breath in the face of significant costs rises from April with changes to National Insurance and the National Living Wage," said REC chief Neil Carberry.

Jon Holt, group chief executive and UK senior partner at KPMG, said many companies continued to have a "wait and see" approach to hiring, but added that the softer decline in recruitment seen last month "could be an indication that expectations of further interest rate cuts and better-than-expected recent economic data are starting to release some of the pressures on business".

Reporting by Frank Prenesti for Sharecast.com