Britain's employment market has experienced the steepest deterioration in hiring plans across Europe following the Chancellor's substantial tax measures on businesses.
Fresh data from recruitment firm ManpowerGroup UK reveals that employer confidence in making new appointments has plummeted more dramatically than in any of the 21 European nations surveyed.
The research indicates that British companies have dramatically scaled back their recruitment ambitions over the past year. Before last autumn's fiscal statement, 41 per cent of employers intended to expand their workforce whilst merely 13 per cent anticipated reductions.
This optimism has now largely dissipated, with the margin between businesses planning to recruit versus those expecting to reduce staff shrinking to just 11 percentage points - representing a precipitous 17-point collapse in hiring sentiment.
The UK's 17-point deterioration in recruitment intentions stands in stark contrast to the experiences of other major European economies.
France recorded a decline of eight points over the same period, whilst Germany saw an even more modest five-point reduction in hiring optimism.
Petra Tagg, director at ManpowerGroup UK, commented on the findings: "It's a tough outlook for the UK at the moment. Whereas last year the same pressure was being felt across Europe, this year the UK labour market is steering its own course and it's unlike one we've faced before."
The divergence between Britain and its European counterparts highlights the particular challenges facing UK employers as they navigate the aftermath of the Chancellor's £40billion tax package introduced last year.
Companies remain focused on confronting challenges from increased staffing expenses | PAA separate industry survey has revealed that the number of individuals searching for employment has surged at its most rapid pace in nearly five years.
The KPMG and Recruitment & Employment Confederation report indicates that August witnessed the sharpest increase in jobseekers since November 2020, when Britain was grappling with pandemic restrictions.
The research attributed this trend to "weak confidence around the economic outlook and concerns over costs" as companies reduced recruitment activity and some organisations implemented workforce reductions.
Unemployment in the UK remains high
| GETTYRegional disparities emerged prominently, with the South East experiencing the most severe contraction in available positions.
Construction emerged as the sole sector demonstrating increased staffing requirements, whilst retail and hospitality continued to register declining permanent employment opportunities, intensifying worries about labour market stability.
Industry leaders have issued urgent appeals to the Chancellor to refrain from implementing additional fiscal burdens in the forthcoming November Budget.
Experts say it's unlikely we'll see a significant shift in recruitment patterns in the near term
| GETTYNeil Carberry, chief executive of the REC, stated: "All eyes are now on the Autumn Budget, in hope that the Chancellor won't do any further damage to the labour market with costs on hiring. For the economy to thrive, the Budget must recognise the need for investment in people."
Jon Holt, chief executive and senior partner at KPMG UK, suggested that recruitment patterns would remain subdued.
He said: "It's unlikely we'll see a significant shift in recruitment patterns in the near term as businesses evaluate their investment strategies in response to policy commitments and the rapid pace of change brought by AI and new technologies."