UK permanent hiring falls to 44.1 in May, temp demand up

UK employers sharply reduced permanent hiring in May, accelerating a long-term trend as businesses navigate rising costs, economic uncertainty, and geopolitical tensions, according to a key industry survey. The data, released on Monday, June 8, by KPMG and the Recruitment and Employment Confederation (REC), showed permanent staff placements fell to an index reading of 44.1, down from 47.5 in April, marking the fastest rate of decline since July 2025.

This contraction represents the 44th consecutive month of decline for permanent placements, the longest such period since the survey began in 1997. In a stark contrast, demand for temporary staff strengthened, with the temporary billings index rising to 52.2 from 50.4, reaching its strongest growth rate since April 2023.

Business leaders and survey respondents cited a confluence of pressures driving the shift. Rising employment costs, weak business confidence, and the economic fallout from the ongoing conflict in the Middle East were highlighted as primary factors making companies hesitant to commit to long-term financial obligations. Jon Holt, group chief executive and UK senior partner at KPMG, stated that ongoing global and...