London hiring has continued its steep decline as employers suffer the consequences of Reeves’ tax raid and rising costs.
The latest jobs report from KPMG and the REC showed demand for workers in the capital has “continued to deteriorate” with both permanent placements and temp billings slumping further.
Permanent staff places, hires with no fixed end dates, fell for the fifth consecutive month.
Elsewhere, temporary bills, which track the total income recruitment agencies earn from placing temporary workers with firms, tumbled for a twentieth straight month.
Anna Purchas, London office senior partner at KPMG UK said, “London’s job market remains under pressure, with both permanent and temporary hiring down in August.”
Despite hiring in the capital still decreasing, the market is showing potential signs of cooling as the pace of the decline “eased sharply” compared to July.
Purchas said, “The positive news is that the pace of decline has slowed, which suggests conditions may be starting to stabilise.”
“It gives employers a real chance to tap into a wide pool of experienced talent.”
Stark rise in staff availability
August signalled a marked rise in the supply of permanent staff available in the capital, surging to the highest level in over two years as well being higher than the national average.
It also marked the 33rd consecutive month of growing permanent staff availability.
Recruiters attributed this increase of available workers to redundancies, senior workers hunting for new roles and firms continuing to tighten their budget.
The supply of short-term workers also expanded in the capital, marking the 32nd month of growth, as more workers showed a desire for temp roles, in particular ones which offered the choice to work from home.
Looking to the Autumn Budget
Employers have been increasingly vocal on the hiring headache Reeve’s tax raid, increases to the national minimum wage and the overhaul of employment law caused.
All businesses will now be looking to the Autumn Budget, hoping the Chancellor will not inflict further damage on the labour market by piling on additional taxes.
Neil Carberry, REC Chief executive said, “Employers need a shot of confidence…there is certainly potential out there, but with fewer vacancies and more candidates looking for work in London and across the UK, the overall picture is subdued.”
“For the economy to thrive the Budget must recognise the need for the long term for investment in people.”
“Meaningful partnerships with employers will yield far more enduring returns than short-term fixes.”