The rate of permanent hires in the UK has fallen for the seventh consecutive month, according to new industry data.
The rate of UK recruitment slowdown was recorded by the Recruitment and Employment Confederation (REC), in conjunction with accountants KPMG.
The findings are published in the firms’ UK Report on Jobs – a week prior to the government’s own jobs data.
Job creation at seven-year low
The REC report also found that the overall number of vacancies has also fallen throughout the year. While the net number of vacancies continues to increase, the current rate of job creation stand at lows not experienced since January 2012.
Jobseekers: an endangered species?
The report highlights a slowdown across all levels of the jobs market, with candidate numbers drying up, too. The number of applicants for both permanent and temporary placements has fallen this year.
The REC suggests that individuals may be growing increasingly hesitant about seeking new positions, amidst growing economic and geopolitical uncertainty. Neil Carberry, REC chief executive said:
“Ongoing Brexit uncertainty has led many firms to delay projects and hiring decisions.
“There are deeper issues which must be addressed to secure the UK’s future prosperity. Productivity is falling, and there are skills shortages in vital sectors across the economy. Solving these problems must be top of the government’s to-do list once the Brexit deadlock has been broken.”
The report is perhaps the strongest indicator yet that 2019 marks the natural ‘market top’ for the recruitment industry. Have enjoyed more than 18 months of record-breaking performance in 2017-2018, recruiters will now be considering their future pathways.
If a leaner market does emerge for recruitment in 2020, then improving the efficiency of your hires may become the priority for the next twelve months.
Next week, the ONS will release its latest tranche of quarterly jobs market data. eBoss will be cross-referencing official government findings with the independent report numbers covered here.