LONDON: Britain’s job market slowed sharply in May as employers became more cautious about hiring.
A new survey showed that many companies delayed permanent recruitment because of rising costs and uncertainty linked to the Iran war.
The monthly Report on Jobs, published by KPMG and the Recruitment and Employment Confederation (REC), revealed a sharp drop in permanent hiring. Permanent job placements fell at the fastest rate since July 2025.
Permanent placements have now declined for 44 consecutive months. This is the longest period of decline since the survey began in 1997.
Jon Holt, Group Chief Executive of KPMG, said both global and domestic uncertainty are making businesses more careful. As a result, many employers are delaying or putting permanent hiring plans on hold.
Instead of offering full time positions, some companies are turning to temporary workers. This allows businesses to remain flexible during uncertain economic conditions.
The survey found that temporary hiring increased in May. The temporary staff index rose to 52.2, up from 50.4 in April. This marked the fastest growth in temporary recruitment since April 2023.
According to the report, many firms preferred short term staff because they were unsure about the economic impact of the Iran war.
The availability of job candidates also increased during the month. More people were available for both permanent and temporary roles compared with April.
At the same time, the number of job vacancies continued to fall. Vacancies declined at the fastest pace since February. The biggest drop was seen in permanent positions.
The survey was based on responses from around 400 recruitment agencies across Britain. Data was collected between May 12 and May 22.
