The April UK Market Briefing presents a mixed picture. Unemployment fell to 4.9% in December–February, but inactivity rose to 21.0% and the employment rate eased to 75.0%. Payrolled employment was 65,000 lower year on year in March, showing why the headline unemployment improvement needs wider context.
Fragile signs of stabilisation
Vacancies declined to 711,000 in January–March, their lowest level since February–April 2021. The KPMG/REC survey nevertheless indicated that demand was falling at its softest pace in ten months. The Permanent Placements Index held at 49.2, signalling a marginal decline rather than renewed growth.
Engineering recorded modest permanent demand growth, while retail and hospitality remained weak. London showed an improvement in permanent hiring, although regional conditions varied and temporary billings were subdued.
Regular pay growth eased to 3.6% and total pay to 3.8%. Candidate availability continued to expand, reflecting redundancies and limited job opportunities as well as giving employers greater choice.
What this means for talent leaders
Organisations can use broader talent pools to fill priority roles while reviewing pay offers, retention and internal development. National hiring plans need to account for differing regional and sector conditions.
The briefing identifies energy-price volatility as a key risk to the emerging stability. Workforce plans should remain adaptable if higher costs squeeze margins, weaken consumer demand or delay recruitment decisions.