# UK firms cut hiring of permanent staff, recruiters’ survey shows
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-10
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Firms Cut Permanent Staff Hiring Amid Inflation Pressure
Meta Description: LONDON - Recruitment survey shows hiring slowdown as BoE makes moves to tackle inflation pressure. Increase in temporary staff amid economic uncertainty.
URL: https://financedigest.com/uk-firms-cut-hiring-of-permanent-staff-recruiters-survey-showshtml

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# UK firms cut hiring of permanent staff, recruiters’ survey shows

LONDON (Reuters) – British firms reduced hiring of permanent staff via recruitment agencies at the fastest pace in more than two years, a survey showed on Wednesday, a day before the Bank of England announces its latest move to tackle inflation pressure.

The Recruitment and Employment Confederation/KPMG said temporary hiring – which often increases when employers are uncertain about the economic outlook – rose at the fastest pace in seven months.

“Firms are hedging their bets,” REC Chief Executive Neil Carberry said. After a better month in March, in April we saw permanent hiring [fall back quickly and businesses](https://www.financedigest.com/businesses-are-investing-in-technology-to-improve-customer-experience-but-many-are-still-falling-short-of-giving-customers-what-they-want.html "Businesses Are Investing in Technology to Improve Customer Experience, but Many Are Still Falling Short of Giving Customers What They Want") turn to temps to help them through. London had a particularly difficult month.”

The REC survey showed staff availability increased for the second month in a row in April as some [companies laid off workers](https://www.financedigest.com/almost-half-of-companies-struggle-to-find-skilled-workers.html "Almost half of companies struggle to find skilled workers") and people sought better-paid work to help cope with an inflation rate that remained above 10% in March.

Salaries for people starting permanent roles increased at the fastest pace in four months, something likely to be noted by the BoE as it [worries about the jump in inflation](https://www.financedigest.com/dollar-eases-before-inflation-data-with-nagging-worries-over-debt-ceiling-impasse.html "Dollar eases before inflation data, with nagging worries over debt ceiling impasse") turning into a long-lasting problem for Britain’s economy.

Most investors and economists [expect the BoE to increase Bank](https://www.financedigest.com/99-financial-firms-expect-benefit-open-banking-improved-customer-onboarding-main-driver-adoption.html "99% of financial firms expect to benefit from Open Banking, with improved customer onboarding the main driver of adoption") Rate for the 12th meeting in a row on Thursday.

(Reporting by William Schomberg, editing by Andy Bruce)


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