Overview

• Permanent job vacancies in the UK have declined for the 15th consecutive month, reaching levels last seen during the pandemic in 2020.
• A £25 billion increase in employers' National Insurance contributions, set to take effect in April, is cited as a major factor behind reduced hiring activity.
• The Bank of England has halved its 2025 economic growth forecast to 0.75% and expects unemployment to rise to 4.75% by the end of the year.
• Business confidence remains low, with companies adopting a 'wait and see' approach to hiring and scaling back investments due to tax burdens and economic uncertainty.
• Pay growth for permanent staff has slowed, with salaries increasing at their softest rate since March 2021, reflecting weaker labor market conditions.