British recruiters are warning the Bank of England of a permanent workforce dip due to economic uncertainty

British recruiters have warned the Bank of England of a dip in permanent hiring at British companies as organizations grapple with continued economic turbulence, a new report has found.

KPMG and the Recruitment and Employment Confederation (REC) collected data on the state of the UK labor market for their latest UK Report on Jobs, finding a decline in the hiring landscape in November.

The REC attributed the dip to economic uncertainty and hesitancy to commit.

The report highlighted a growing disparity between the availability of new applicants, which has increased at the fastest pace since December 2020, and the number of permanent employees, which has fallen at the second fastest pace after the pandemic.

It also found that London saw the sharpest drop in permanent hiring across Britain.

Derek Mackenzie, CEO of Investigo, part of The IN Group, commented: “As we approach the new year, bimodal planning has become a popular trend for companies to navigate economic uncertainty, balancing short-term plans with business strategies for the long term. Urgent business challenges such as generative AI won’t wait for the economy, so it is important that organizations invest in staff to oversee its development to ensure their long-term business health.”

Sectors such as technology are already facing skills shortages, and when it comes to workforce, organizations need digital recruits who can drive efficiencies, stay abreast of emerging trends in areas such as gen AI and data, and ultimately can generate income for the company.

There are a number of different ways companies can hire digitally skilled workers without breaking the bank, such as flexible contracts or entry-level hiring, but it’s important that organizations invest in people regardless of the economic situation. Unlocking people’s potential through their unique skills is the key to success,” he added.

Despite competition for skilled workers, budgetary pressures from the economy caused starting and temporary wages to rise more slowly than in previous months.

The news anticipates the Bank of England’s interest rate decision on December 14. The Bank is expected to leave interest rates unchanged at 5.25 percent.

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