UK Recruitment Outlook – May 2023

As the UK struggles with minimum economic growth, new research by KPMG and the Recruitment and Employment Confederation suggests that hiring processes have started to slow down in the months leading up to May, with permanent job vacancies being the most affected. Respondents have mentioned that candidate shortages may have contributed to this slowdown. In the month of May, there has been a reduction in the candidate supply, most notably for temporary workers as more workers search for long-term placements.

Notably, demand for short-term staff has increased, but at the softest rate for 5 months. There was a notable rise in demand for short-term workers in the Catering industry, but Retail has suffered the weakest rise. There are also significant variations by region. For example, London has noted the strongest increase in permanent job postings, while the lowest was seen in the South of England. All regions, except for the North of England, registered slower increases in short-term postings.

Overall, demand for workers has continued to rise, but at a slower rate than previous months. This will continue to put a strain on the UK economy in the coming months, which could continue to restrict economic growth.

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