(Jan 12): UK employers cut back their hiring again in December, according to a closely watched survey that is likely to add to the Bank of England’s concerns about a weakening jobs market. The Recruitment & Employment Confederation (REC) and KPMG said permanent staff placements fell at the steepest rate since August, as businesses grappled with rising costs and weak sentiment in the wake of Labour’s tax-raising budget on Nov 26. Hiring for temporary roles also fell, albeit at a milder rate. Recruiters surveyed by REC and KPMG also reported a sharp increase in job seekers, largely driven by redundancies, while demand for staff weakened. After cutting jobs last year, companies also reported they forecast employment to decline a further 0.4% in 2026, the weakest outlook since 2020.

Source: The Edge Markets January 12, 2026 09:17 UTC