According to the latest KPMG and REC, UK Report on Jobs, rising economic uncertainty and ongoing candidate shortages weighted on UK labour market performance at the start of 2019.

The permanent jobs placement index in the monthly KPMG/Recruitment and Employment Confederation (REC) Report on Jobs fell to 49.7 from 53.7, below the 50 dividing line between growth and contraction for the first time since just after 2016's referendum on leaving the European Union. The overall number of vacancies for staff increased at the slowest rate since October 2016.

Latest data also showed that worker availability to take up new roles continued to decline. This was primarily linked to high UK employment levels, but also hesitancy amongst workers to switch positions given heightened Brexit uncertainty. Pay pressures subsequently remained high, with salaries and temp wages both increasing strongly since December.