UK firms pause hiring as Iran war stings, REC survey shows

LONDON, June 8 (Reuters) - Britain's ‌jobs market ​cooled ​rapidly in May after employers put the brakes on permanent hiring after the Iran war heightened ‌cost pressures and uncertainty about the economic outlook, an ⁠industry survey showed on Monday.

The monthly Report on Jobs from accountants KPMG ‌and the Recruitment and ‌Employment Confederation, a trade body, showed permanent job placements fell at the fastest pace since July 2025. Placements have ​fallen for 44 months in a row, the longest period of contraction since the survey began in 1997.

"Ongoing global ⁠and domestic uncertainty is making businesses more cautious, and that is increasingly reflected ​in hiring decisions. While some employers are turning to temporary contracts to retain flexibility, many permanent hiring ​plans are being delayed or put ‌on hold," Jon Holt, KPMG's group chief executive, said.

REC and KPMG also said:

• Permanent staff ⁠placements fell to 44.1 in May, down sharply from 47.5 in April

• Firms ramped up hiring of temporary staff, with the index ⁠rising to 52.2 from 50.4, expanding at the quickest pace since April ​2023, as firms opted for short-term staff due to uncertainty about the Iran war

• The availability of candidates for permanent and temporary roles ‌also rose faster than in April

• Vacancies dropped at the sharpest pace since February, driven ‌by a sharper fall in vacancies for permanent roles

• The ⁠survey was based on responses ‌from a panel ​of around 400 recruitment agencies between May 12 and May 22

(Reporting by Suban Abdulla; editing by David ‌Milliken)

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