Recruitment firms report 'slowdown' in permanent hiring

11 October 2023 , 09:25

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Businesses are reluctant to recruit full-time permanent members of staff. (Image: Getty Images/iStockphoto)

Research indicates that companies are hesitant to hire permanent staff due to economic uncertainty and rising costs, affecting overall staff recruitment.

The Recruitment and Employment Confederation (REC) and KPMG conducted a study which revealed a decline in the number of permanent placements by recruiters in recent weeks, as firms were apprehensive about committing to new hires.

The research, which surveyed 400 recruitment firms, also highlighted an increased demand for short-term staff and a rise in the availability of workers to fill these roles.

Neil Carberry, Chief Executive of REC, commented: "Employers tell us they are feeling better about themselves as the year moves on, and today's data does suggest the possibility of a turnaround in hiring over the next few months."

"Permanent placements have been falling for a year now from abnormal post-pandemic highs. While permanent hiring activity continues to slow, fewer firms reported a slowdown last month, leading to a much shallower rate of decline than most months recently."

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"Likewise, temporary hiring remains robust with billings growing marginally in September as they have most months this year."

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Steve Charnock