Commenting on the latest survey results,
Neil Carberry, REC Chief Executive, said:
“The critical moment in any labour market slowdown is the point at which demand starts to turn around.
Today’s hiring data suggests that point is close, with fewer recruitment firms reporting a drop in demand.
While the trend is still gently down, the pace of decline in permanent hiring is the slowest in ten months.
Temporary hiring, which has had much less of a decline overall, also scored better than last month. Firms have told us all year that they will be willing to hire and invest in their business when confidence returns to the wider
economy – and there is a glimmer of lower inflation and the prospect of lower interest rates starting to drive that now.
“Pay continues to rise, with a slight bump up this month likely to have been driven by the April peak in employer pay rises and the recent Minimum Wage rise. With substantial wage rises attracting people to work, and low unemployment, businesses and government alike
will need new approaches to developing and engaging our labour force – alongside new technology – if the UK is going to grow in the way it needs to.
“Our flexible labour market is at the heart of this. It is one of the big success stories of the UK economy, with millions of workers and companies building their futures in ways that would not be possible in the one-size-fitsall approach of the past. It’s why, for instance, nurses
choose to work via agencies so they can get control over their working lives. Any government needs to work hard to understand what workers and companies need now – a more nuanced debate than is often centre stage in Whitehall and Westminster. A partnership approach
with businesses is essential.”
Jon Holt, Chief Executive and Senior Partner of KPMG in the UK, said:
“UK CEOs continue to grapple with the Bank’s hawkish stance on interest rates, and will no doubt hope April’s survey data is another marker in the sand on the journey towards a summer cut.
“While there are still complexities, like pay rates improving due in part to last month’s 9.8% rise in the National Living Wage, overall pressure is easing on the labour market.
Ongoing weak demand is driving the steady decline in permanent staff appointments month on month, and we’ve seen a sharp uptick in candidate availability.
“Business leaders see this cooling, combined with weakening inflationary pressure, as indicators for the Bank to hopefully shift to a more dovish position. Companies would then have the confidence and certainty to press go on their investment strategies.”
