UK employers scaled back hiring in the weeks leading up to Chancellor John Healey’s budget announcement, marking an end to a brief employment recovery. The Recruitment and Employment Confederation (REC) and KPMG reported that hiring activity dropped for the first time in four months, according to their latest survey released Monday.
The survey also revealed a decline in temporary job placements, the first since March, alongside a continuing reduction in job vacancies. The data is closely monitored by Bank of England officials for insights into the labor market.
The findings suggest heightened uncertainty among employers ahead of the budget, which may have contributed to the cautious hiring approach. The report highlights the fragile state of the UK job market as economic turbulence persists.