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    Home > Finance > UK hiring slows again in May but downturn might be easing, recruiters say
    Finance

    UK hiring slows again in May but downturn might be easing, recruiters say

    Published by Global Banking & Finance Review®

    Posted on June 13, 2025

    2 min read

    Last updated: January 23, 2026

    UK hiring slows again in May but downturn might be easing, recruiters say - Finance news and analysis from Global Banking & Finance Review
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    Tags:Recruitmentunemployment ratesUK economylabor marketeconomic growth

    Quick Summary

    UK hiring slowed in May, but signs of recovery are emerging with increased temporary staffing and rising starting salaries.

    UK Job Growth Slows in May, Signs of Recovery May Be Emerging

    By David Milliken

    LONDON (Reuters) -British businesses hired staff at a slower pace in May as demand for staff fell for an eighth consecutive month, but there were some signs that the downturn was beginning to bottom out, a survey of recruiters showed on Friday.

    The Recruitment and Employment Confederation said its members reported a further big fall in hiring for permanent jobs but spending on temporary staff fell by the least in six months.

    "More encouraging signs in temp billings, vacancies and stabilising private-sector demand offer a measure of optimism as we head into the second half of the year," REC Chief Executive Neil Carberry said.

    Britain's labour market is facing headwinds including weak economic growth, a sharp rise in employers' social security contributions and a near-7% rise in the minimum wage which took effect in April.

    Tax data showed that the number of employees on company payrolls dropped by the most in five years last month, while the unemployment rate for the three months to April rose to its highest in nearly four years at 4.6%.

    REC said its members reported that the number of candidates seeking work had increased at the fastest pace since December 2020 last month "amid reports of redundancies and fewer job opportunities".

    The Bank of England - which is expected to keep interest rates on hold next week - has said that developments in the labour market will be key to determining how fast it lowers interest rates.

    Private-sector regular pay growth slowed to 5.1% in the three months to April from 5.5% in the first quarter of 2025 but still remains well above levels the BoE views as consistent with getting inflation back to its 2% target.

    REC said starting salaries for permanent staff had picked up in May to rise at the quickest pace since August 2024 and that wages for temporary staff rose by the most in a year. But - unlike the official wage data - REC said its measures of pay growth remained below their long-run averages.

    (Reporting by David Milliken; editing by Suban Abdulla)

    Key Takeaways

    • •UK businesses hired staff at a slower pace in May.
    • •Temporary staffing spending fell the least in six months.
    • •Labour market facing challenges like weak economic growth.
    • •Unemployment rate rose to its highest in nearly four years.
    • •Starting salaries for permanent staff increased in May.

    Frequently Asked Questions about UK hiring slows again in May but downturn might be easing, recruiters say

    1What has been the trend in UK hiring in May?

    UK businesses hired staff at a slower pace in May, marking the eighth consecutive month of declining demand for staff.

    2What does the REC report indicate about temporary staff hiring?

    The Recruitment and Employment Confederation noted that spending on temporary staff fell by the least in six months, suggesting some stabilization.

    3How has the unemployment rate changed recently?

    The unemployment rate for the three months to April rose to its highest level in nearly five years, indicating challenges in the labour market.

    4What factors are affecting the UK labour market?

    The UK labour market is facing challenges such as weak economic growth, increased social security contributions, and a rise in the minimum wage.

    5What did the Bank of England say about interest rates?

    The Bank of England is expected to keep interest rates on hold, with developments in the labour market being crucial for future rate decisions.

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