Latest news with #JonHolt
Yahoo
5 days ago
- Business
- Yahoo
Jobs market cools further over economic concerns and rising costs
Hiring activity fell further in July as the UK jobs market was weighed down by concerns over the economic outlook and increased labour costs, according to new figures. Growth in starting salaries also slowed to its lowest level for more than four years as firms tightened their recruitment budgets. The monthly KPMG and REC report on jobs showed a 'further steep decline' in permanent staff appointment in July. The influential report showed a reading of 40.0 for permanent placements in the UK, improving slightly from 39.1 in June. However, any figure below 50 represents decline in the job market, with levels over 50 showing growth. The data therefore indicated another month of contraction. Jon Holt, group chief executive and UK senior partner at KPMG, said: 'The labour market cooled in July as chief execs held back from increasing their recruitment budgets. 'Economic uncertainty, the complexities of AI adoption and global headwinds are all weighing on business planning.' Recruiters frequently said in the survey that weak confidence about the economy and 'increases in payroll costs' were factors causing the drop in hiring. It pointed towards a 'steady' jobs market in certain sectors, such as engineering, but flagged a continued drop in hiring in retail and hospitality. Meanwhile, starting salary inflation slowed for a second month in a row to its lowest level since March 2021. The data comes after the Bank of England pointed towards slowing wage growth over the coming year while the unemployment rate could tick higher. Kate Shoesmith, REC deputy chief executive, said: 'There is a path to jobs market recovery – but it will take co-ordinated action from Government, the Bank of England and businesses to maximise on any potential upswing. 'With starting salaries and temporary pay rising only modestly, it was right to cut interest rates last week. 'More action like this, to stabilise the business cost-base, is what will support growth and boost the jobs market this year.'
Yahoo
5 days ago
- Business
- Yahoo
Jobs market cools further over economic concerns and rising costs
Hiring activity fell further in July as the UK jobs market was weighed down by concerns over the economic outlook and increased labour costs, according to new figures. Growth in starting salaries also slowed to its lowest level for more than four years as firms tightened their recruitment budgets. The monthly KPMG and REC report on jobs showed a 'further steep decline' in permanent staff appointment in July. The influential report showed a reading of 40.0 for permanent placements in the UK, improving slightly from 39.1 in June. However, any figure below 50 represents decline in the job market, with levels over 50 showing growth. The data therefore indicated another month of contraction. Jon Holt, group chief executive and UK senior partner at KPMG, said: 'The labour market cooled in July as chief execs held back from increasing their recruitment budgets. 'Economic uncertainty, the complexities of AI adoption and global headwinds are all weighing on business planning.' Recruiters frequently said in the survey that weak confidence about the economy and 'increases in payroll costs' were factors causing the drop in hiring. It pointed towards a 'steady' jobs market in certain sectors, such as engineering, but flagged a continued drop in hiring in retail and hospitality. Meanwhile, starting salary inflation slowed for a second month in a row to its lowest level since March 2021. The data comes after the Bank of England pointed towards slowing wage growth over the coming year while the unemployment rate could tick higher. Kate Shoesmith, REC deputy chief executive, said: 'There is a path to jobs market recovery – but it will take co-ordinated action from Government, the Bank of England and businesses to maximise on any potential upswing. 'With starting salaries and temporary pay rising only modestly, it was right to cut interest rates last week. 'More action like this, to stabilise the business cost-base, is what will support growth and boost the jobs market this year.'
The Independent
5 days ago
- Business
- The Independent
Jobs market cools further over economic concerns and rising costs
Hiring activity fell further in July as the UK jobs market was weighed down by concerns over the economic outlook and increased labour costs, according to new figures. Growth in starting salaries also slowed to its lowest level for more than four years as firms tightened their recruitment budgets. The monthly KPMG and REC report on jobs showed a 'further steep decline' in permanent staff appointment in July. The influential report showed a reading of 40.0 for permanent placements in the UK, improving slightly from 39.1 in June. However, any figure below 50 represents decline in the job market, with levels over 50 showing growth. The data therefore indicated another month of contraction. Jon Holt, group chief executive and UK senior partner at KPMG, said: 'The labour market cooled in July as chief execs held back from increasing their recruitment budgets. 'Economic uncertainty, the complexities of AI adoption and global headwinds are all weighing on business planning.' Recruiters frequently said in the survey that weak confidence about the economy and 'increases in payroll costs' were factors causing the drop in hiring. It pointed towards a 'steady' jobs market in certain sectors, such as engineering, but flagged a continued drop in hiring in retail and hospitality. Meanwhile, starting salary inflation slowed for a second month in a row to its lowest level since March 2021. The data comes after the Bank of England pointed towards slowing wage growth over the coming year while the unemployment rate could tick higher. Kate Shoesmith, REC deputy chief executive, said: 'There is a path to jobs market recovery – but it will take co-ordinated action from Government, the Bank of England and businesses to maximise on any potential upswing. 'With starting salaries and temporary pay rising only modestly, it was right to cut interest rates last week. 'More action like this, to stabilise the business cost-base, is what will support growth and boost the jobs market this year.'
Zawya
14-07-2025
- Business
- Zawya
UK labour market cooled rapidly in June, KPMG/REC survey shows
Britain's labour market cooled sharply in June and the number of people available for work jumped at the fastest pace since the COVID-19 pandemic, a survey of recruiters showed on Monday. The Recruitment and Employment Confederation trade body and accountants KPMG said their index of staff availability rose to 66.1 from 63.3 in May, the highest reading since November 2020. Only the pandemic, the global financial crisis of 2008-09 and the immediate aftermath of the Sept. 11 attacks in the United States have resulted in higher readings of slack in the labour market. REC and KPMG said the latest readings reflected unusually high levels of uncertainty rather than a sudden downturn in Britain's economy. "Ongoing geopolitical turbulence and the threat of rising costs, alongside the promise of technology efficiencies, mean companies continue to wait and see with their hiring," said Jon Holt, group chief executive at KPMG. The survey is watched by Bank of England officials who are increasingly relying on unofficial gauges of the labour market because of problems with some official data. The BoE is widely expected to cut interest rates next month. Starting pay for new recruits and demand for staff cooled, adding to signs that the labour market is losing momentum. Figures due out from the Office for National Statistics on Thursday are expected to show a similar slowdown in pay growth. British economic growth contracted unexpectedly in May, according to official data published last week. While U.S. President Donald Trump remains unpredictable on his approach to trade tariffs, last month's publication of the British government's industrial strategy might increase certainty among companies' hiring plans, Holt said. (Reporting by Andy Bruce Editing by William Schomberg)
Reuters
13-07-2025
- Business
- Reuters
UK labour market cooled rapidly in June, KPMG/REC survey shows
July 14 (Reuters) - Britain's labour market cooled sharply in June and the number of people available for work jumped at the fastest pace since the COVID-19 pandemic, a survey of recruiters showed on Monday. The Recruitment and Employment Confederation trade body and accountants KPMG said their index of staff availability rose to 66.1 from 63.3 in May, the highest reading since November 2020. Only the pandemic, the global financial crisis of 2008-09 and the immediate aftermath of the Sept. 11 attacks in the United States have resulted in higher readings of slack in the labour market. REC and KPMG said the latest readings reflected unusually high levels of uncertainty rather than a sudden downturn in Britain's economy. "Ongoing geopolitical turbulence and the threat of rising costs, alongside the promise of technology efficiencies, mean companies continue to wait and see with their hiring," said Jon Holt, group chief executive at KPMG. The survey is watched by Bank of England officials who are increasingly relying on unofficial gauges of the labour market because of problems with some official data. The BoE is widely expected to cut interest rates next month. Starting pay for new recruits and demand for staff cooled, adding to signs that the labour market is losing momentum. Figures due out from the Office for National Statistics on Thursday are expected to show a similar slowdown in pay growth. British economic growth contracted unexpectedly in May, according to official data published last week. While U.S. President Donald Trump remains unpredictable on his approach to trade tariffs, last month's publication of the British government's industrial strategy might increase certainty among companies' hiring plans, Holt said.
