Struggling to find work? UK sees more jobseekers and fewer vacancies

UK vacancies continued to decline in February as businesses paused or slowed their hiring plans due to a subdued economic outlook and rising payroll costs. 

According to KPMG and REC’s latest job market survey, the number of vacancies fell for the sixteenth month running in February.

The report, compiled by S&P Global after surveying around 400 UK recruitment and employment consultancies, showed that permanent vacancies continued to decline at a slightly sharper pace than temporary roles.

Permanent staff appointments fell for the twenty-ninth month in a row, yet the latest drop in placements was the softest since last October.

“While it is still a wait and see approach to hiring, with February data showing companies continue to hold back on recruitment, the softer decline could be an indication that expectations of further interest rate cuts and better-than-expected recent economic data are starting to release some of the pressures on business,” Jon Holt, Group Chief Executive and UK Senior Partner KPMG, said.

According to the report, vacancies declined the most in permanent positions in secretarial and clerical jobs, followed by executive/professional and retail sectors. 

Temporary staff openings were also greatly reduced in executive/professional roles, followed by retail and IT & computing. Blue collar positions recorded the softest drop in temporary vacancies.

While vacancies dropped, redundancies further increased the number of unemployed individuals.

February data indicated that the number of candidates searching for both permanent and temporary roles is increasing fast.

Slowing employer demand coupled with an increased number of job seekers kept a lid on overall pay pressures. 

As a result, starting salaries rose at the