The May UK Market Briefing finds tentative stabilisation under pressure. Unemployment was 5.0% in January–March, below the previous non-overlapping quarter’s 5.2% but slightly above the preceding rolling period. Payrolled employment fell 94,000 year on year, while the early April estimate pointed to further weakness.
Hiring caution intensifies
Vacancies fell to 705,000 in February–April, down 28,000 on the quarter. The briefing notes that this change lay within the vacancy survey’s confidence interval, so the precise size of the decline should be treated cautiously.
The April KPMG/REC survey showed permanent appointments falling at their fastest rate since January. Employers cited uncertainty and rising costs when deferring hiring. Engineering remained the only sector with increased permanent demand, while retail and hospitality were particularly weak.
London and the North showed modest improvements, contrasting with steeper falls in the Midlands and South. Temporary billings edged up as employers sought flexibility. Regular pay growth eased to 3.4%, with CPIH-adjusted real growth of just 0.1%.
What this means for talent leaders
Greater candidate availability creates opportunities to fill important gaps, but recruitment decisions need a clear business case. Retention and internal mobility remain priorities where budgets are constrained.
The report recommends location-specific planning and monitoring energy-cost pressures. Its outlook remains cautious, with weak demand and geopolitical uncertainty threatening the limited signs of recovery.