The UK labour market saw the sharpest rise in jobseekers since 2020 in March, as fewer job vacancies and a growing wave of redundancies pushed more people into the market, according to the latest data from KPMG and the Recruitment and Employment Confederation (REC).
The rise in staff availability — the most significant since December 2020 — comes as employers rein in hiring plans amid ongoing economic uncertainty, tighter recruitment budgets and rising employment costs.
The KPMG-REC permanent staff availability index jumped to 63.2 in March, up from 59.2 the previous month, while temporary staff availability also climbed to 60.2, from 59.6 in February. A score above 50 indicates rising availability.
Meanwhile, the vacancy index rose slightly to 44.2 from 41.8 — but remains well below the 50-point threshold, indicating continued contraction in demand for new hires.
Although starting salary growth remains subdued, there was a slight increase in wage inflation compared to February’s four-year low. Recruiters said some employers are raising pay to attract skilled candidates, though tighter budgets and muted demand continue to dampen overall salary growth.
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