MNI BRIEF: UK Redundancies Led To Rise in Candidate Supply

The UK saw a further decline in permanent placements in November, while temporary billings saw a sustained uptick, the latest KPMG/REC jobs report showed. Hiring intentions were dampened by uncertainty regarding the pandemic as well as the renewed lockdown, with companies preferring to hire short-term workers to fulfil business needs. The report further noted that demand for staff declined markedly, led by a significant fall in permanent job vacancies.

Redundancies linked to the covid-crisis led to a further increase of worker availability for both permanent and temporary placements. High staff supply and weak demand put downward pressure on starting salaries and temp wages. "The continual reluctance to recruit permanent staff and a further marked increase in people available for work, leaves the UK jobs market teetering on a precipice." said James Stewart, Vice Chair at KPMG.

"Looking ahead, there is reason for optimism with the welcome vaccine news, although challenges remain as the recent lockdown, new tier system and impending Brexit means it will be a long road back to the UK jobs market seen pre-Covid." he added.