Businesses struggling with hiring amidst economic uncertainty, new data shows

According to the latest statistics from APSCo, recruitment fell sharply in April, suggesting that employers are holding back on hiring as business confidence continues to be impacted by economic uncertainty

New data from Bullhorn, the leading software provider for the staffing industry, reveals a significant decrease in both permanent and contract vacancies, with a 16% and 13% decline respectively between March and April.

The annual comparison paints a bleak picture, showing a 24% decrease in permanent roles and a 21% decrease in contract positions between April 2022 and 2023.

The data also highlights a substantial drop in placements during April, with a 25% decrease in both permanent and contract positions compared to March 2023.

While this dip can be attributed to the usual hiring slowdown during the Easter holidays, the year-on-year analysis points to a deeper contraction caused by a lack of business confidence.

Permanent placements saw a nearly one-third decline compared to the same period in 2022, while contract placements also fell by 27%.

Interestingly, the data does reveal a slight monthly increase in average permanent salaries, albeit a modest two per cent. This suggests that remuneration is gradually rising, likely influenced by the ongoing cost-of-living crisis and the scarcity of highly skilled professionals throughout the UK.

Ann Swain, global CEO of APSCo comments: “The latest figures do present a level of concern for the UK. The recruitment market often serves as a bellwether for the broader economic climate, making this sharp annual fall in jobs and placements an issue that all business leaders and government authorities should take note of.

“The data suggests that we have shifted from a lack of candidates to a sharp drop in requirements as business confidence falls amid economic uncertainty. While reports from the OBR suggest that we have narrowly avoided a recession so far, we could be heading in a different direction unless confidence in the economy is strengthened, and that needs to be underpinned by a strong labour market.”