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UK firms cut hiring of permanent staff, recruiters’ survey shows
Global Banking and Finance Review
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LONDON (Reuters) – British firms reduced hiring of permanent staff via recruitment agencies at the fastest pace in more than two years, a survey showed on Wednesday, a day before the Bank of England announces its latest move to tackle inflation pressure.
LONDON (Reuters) – British firms reduced hiring of permanent staff via recruitment agencies at the fastest pace in more than two years, a survey showed on Wednesday, a day before the Bank of England announces its latest move to tackle inflation pressure.
The Recruitment and Employment Confederation/KPMG said temporary hiring – which often increases when employers are uncertain about the economic outlook – rose at the fastest pace in seven months.
“Firms are hedging their bets,” REC Chief Executive Neil Carberry said. “After a better month in March, in April we saw permanent hiring fall back quickly and businesses turn to temps to help them through. London had a particularly difficult month.”
The REC survey showed staff availability increased for the second month in a row in April as some companies laid off workers and people sought better-paid work to help cope with an inflation rate that remained above 10% in March.
Salaries for people starting permanent roles increased at the fastest pace in four months, something likely to be noted by the BoE as it worries about the jump in inflation turning into a long-lasting problem for Britain’s economy.
Most investors and economists expect the BoE to increase Bank Rate for the 12th meeting in a row on Thursday.
(Reporting by William Schomberg, editing by Andy Bruce)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI).
Temporary hiring refers to the practice of employing workers for a limited period, often to meet short-term needs or during peak business times. It allows companies to adjust their workforce quickly without long-term commitments.
Permanent hiring involves recruiting employees for long-term positions within a company. These employees typically receive full benefits and job security, contributing to the company's stability and growth.
Staff availability refers to the number of qualified individuals who are ready and able to work in a specific job market. It is influenced by factors such as unemployment rates and economic conditions.
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