UK Hiring Slows as Businesses Face Rising Costs and Economic Uncertainty

New surveys reveal a cooling labor market, with reduced hiring, slower wage growth, and concerns over upcoming tax and wage increases.

Permanent job placements in the UK declined for the 29th consecutive month in February, though the pace of decline was slower than in January.
Starting salaries for new hires grew at their slowest rate in four years, reflecting reduced wage pressures as more candidates entered the job market.
Upcoming increases in the National Living Wage (6.7%) and employer National Insurance contributions are expected to further strain businesses starting in April.
Vacancies fell for the 16th consecutive month, with employers citing economic uncertainty and higher payroll costs as reasons for reduced hiring activity.
Surveys indicate a cautious outlook, with some businesses planning layoffs or scaling back investment, while others anticipate potential relief from interest rate cuts and improved economic data.