(Bloomberg) -- The number of people available to work in the UK rose for the first time in two years, easing one of the tightest labor markets in more than a generation, a survey compiled by S&P Global showed.
The report showed the supply of people looking for permanent and temporary jobs both rose and that upward pressure on pay eased in March.
The findings from job recruiters and the accounting firm KPMG may reduce inflationary pressures coming from the labor market. Employers complain they’re having trouble finding staff after thousands of workers dropped out of the labor market since the pandemic. This report suggests some of those people may be looking for work again.
“People regained the confidence to look for new roles, but economic uncertainty caused firms to make redundancies and often opt for temporary hires over permanent placements,” Claire Warnes, a partner at KPMG, said in a statement Wednesday.
- Growth in temporary hires hit a six-month high, with some companies reluctant to take on permanent staff.
- Vacancies rose again although at a slower rate than in February, which marked a four-month high.
- Starting pay increased with employers competing for the best candidates, who are asking for more money because of the cost-of-living crisis.
- “The market is now better described as flat than declining,” said Neil Carberry, chief executive officer of the Recruitment & Employment Confederation, which conducted the survey. “While the market is still tight, it should be getting gradually easier for firms to hire.”
©2023 Bloomberg L.P.
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