London recruitment has maintained its sharp downturn as businesses face the fallout from Reeves’ tax assault and escalating expenses.
The most recent employment data from KPMG and the REC revealed that worker demand in the capital has “continued to deteriorate” with both permanent appointments and temporary invoicing declining further, as reported by City AM.
Permanent staff appointments, positions without fixed termination dates, dropped for the fifth month running.
Meanwhile, temporary invoicing, which monitors the aggregate revenue recruitment firms generate from placing short-term workers with companies, plummeted for a twentieth consecutive month.
Anna Purchas, London office senior partner at KPMG UK said, “London’s job market remains under pressure, with both permanent and temporary hiring down in August.”
Although recruitment in the capital continues falling, the marketplace is displaying potential indicators of stabilisation as the rate of decline “eased sharply” compared to July.
Purchas said, “The positive news is that the pace of decline has slowed, which suggests conditions may be starting to stabilise.
“It gives employers a real chance to tap into a wide pool of experienced talent.”
Sharp increase in workforce availability
August witnessed a substantial surge in the supply of permanent personnel available in the capital, climbing to the highest point in more than two years whilst also exceeding the national benchmark.
It additionally represented the 33rd successive month of expanding permanent workforce availability. Recruitment specialists attributed this rise in available workers to job cuts, senior professionals seeking new positions and companies continuing to restrict their spending.
The pool of temporary workers also grew in the capital, representing the 32nd consecutive month of expansion, as more professionals expressed interest in short-term positions, particularly those offering remote working options.
Looking to the Autumn Budget
Employers have become increasingly outspoken about the recruitment challenges caused by Reeves’s tax offensive, national minimum wage rises and employment legislation reforms.
Every business will now focus on the Autumn Budget, hoping the Chancellor will avoid further harm to the jobs market by imposing additional levies.
Neil Carberry, REC Chief Executive, commented: “Employers need a shot of confidence…there is certainly potential out there, but with fewer vacancies and more candidates looking for work in London and across the UK, the overall picture is subdued.”
“For the economy to thrive the Budget must recognise the need for the long term for investment in people.”
“Meaningful partnerships with employers will yield far more enduring returns than short-term fixes.”
