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UK employers report weaker hiring but stronger pay growth in December
Permanent placements fell for the 39th month while starting salaries increased at the fastest pace since May, reflecting cautious hiring amid rising business costs, REC and KPMG said.
- Collected between December 4 and 17, the KPMG/REC survey found Britain's jobs market cooled in December as hiring weakened, yet starting salaries for permanent roles rose at the fastest pace in seven months.
- Recruiters blamed rising costs and policy uncertainty, saying fears over Labour's Employment Rights Act and Rachel Reeves, finance minister's payroll tax rise have made hiring riskier and more expensive.
- The vacancies index eased to 43.4 while candidate availability remained strong at 66.3, only marginally below November's 66.5.
- The number of people seeking permanent work rose at its fastest pace in four months while vacancies declined, intensifying competition as Conservative Andrew Griffith called it a 'wake-up call' for Chancellor Rachel Reeves.
- The Bank of England's December rate cut to 3.75% means investors pricing one or two more cuts in 2026 will weigh mixed signals, as Jon Holt said, `The jobs market at the end of 2025 was still signalling caution`.
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UK employers report weaker hiring but stronger pay growth in December
Britain's jobs market cooled in December but starting salaries for permanent jobs rose at a faster pace, according to a survey of recruiters that will be studied by the Bank of England as it considers when it should cut interest rates again.
·United Kingdom
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Jobs market stalls as permanent and temporary hiring both fall
The UK jobs market ended 2025 on a weak footing, with both permanent and temporary hiring falling in December and unemployment already sitting at a four-year high. A closely watched labour market survey by KPMG and the Recruitment and Employment Confederation (REC) shows that permanent staff placements dropped to a four-month low at the end of the year, while temporary roles also declined. Vacancies continued to fall and the availability of work…
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Total News Sources8
Leaning Left1Leaning Right1Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 20%
C 60%
R 20%
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