LONDON, Dec 8 (Reuters) – Britain’s jobs market remained weak last month in the run-up to finance minister Rachel Reeves’ budget on November 26 as employers worried about possible new tax increases, an industry report showed on Monday.
Permanent job placements shrank at the slowest rate since July 2024 but the reading was barely up from October, according to the survey by accountants KPMG and the Recruitment and Employment Confederation, a trade body.
The survey’s gauge of temporary hiring slipped below the 50.0 no-change level.
“A complex business environment and uncertainty around the budget kept hiring on ice last month, as business leaders weighed potential impacts,” said Lisa Fernihough, head of advisory at KPMG.
“There will be relief at the absence of major tax hikes. However that alone is unlikely to be enough to see a marked change in how firms are planning.”
Some other recent business surveys have similarly shown downturns in hiring before Reeves’ annual budget last month.
It included plans for 26 billion pounds ($35 billion) in tax rises but spared employers from the brunt of the increases.
A Bank of England survey published last week – which was also conducted before Reeves’ budget – showed firms expected to reduce staff numbers.
Official data last month showed Britain’s jobless rate hit 5.0% in the third quarter, which some economists linked to tax hikes that were announced by Reeves last year and took effect in April. Wage growth cooled slightly.
The REC/KPMG survey showed that a fall in vacancies in November was the least severe in five months. The availability of workers rose at the second-fastest pace since November 2020.
A measure of growth in starting pay for people taken on for permanent roles increased at the fastest pace in five months as employers competed for candidates with in-demand skills.
The survey of around 400 recruitment and employment consultancies was conducted between November 12 and 24.
($1 = 0.7493 pounds)
(Reporting by Suban AbdullaEditing by William Schomberg)
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