Firms hold back on hiring amid ‘significant cost rises’, surveys say

KPMG/REC report shows decline in people being placed in roles continues, while unemployment is rising, says BDO

Companies are putting the brakes on hiring new staff amid a subdued" economic outlook and rising wage bills, according to the latest business surveys.

In signs of a weakening UK labour market, the consultancy KPMG and the trade body the Recruitment and Employment Confederation (REC) said a marked decline in the number of people being placed in permanent and temporary roles continued in February, although hiring declined at a slower pace than in January.