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Wednesday 11 October 2023 6:00 am  |  Updated:  Tuesday 10 October 2023 2:17 pm

Firms reluctant to recruit permanent staff, research suggests

By: City PM reporter

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Firms have been reluctant to take on new staff.
Firms have been reluctant to take on new staff.

Uncertainty over the economic outlook as well as rising costs are continuing to affect staff recruitment, new research suggests.

The Recruitment and Employment Confederation (REC) and KPMG found the number of permanent placements by recruiters fell in recent weeks as companies were reluctant to commit to hiring new workers.

The study among 400 recruitment firms also showed improved demand for short-term staff and increased availability of workers to fill vacancies.

Neil Carberry, REC chief executive, said: “Employers tell us they are feeling better about themselves as the year moves on, and today’s data does suggest the possibility of a turnaround in hiring over the next few months.

“Permanent placements have been falling for a year now from abnormal post-pandemic highs. While permanent hiring activity continues to slow, fewer firms reported a slowdown last month, leading to a much shallower rate of decline than most months recently.

“Likewise, temporary hiring remains robust with billings growing marginally in September – as they have most months this year.”

Press Association – Alan Jones

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Jobs slump as economy ‘held up by uncertainty’

Rachel Reeves speaking at an IOD event.

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