Britain’s job market ‘floundering’ as companies remain cautious about hiring

The Guardian - World NewsEN 3 min read 100% complete by Tom KnowlesMarch 9, 2026 at 01:01 AM

AI Summary

medium article 3 min

Britain's job market is struggling due to cautious hiring practices by companies facing cost pressures and economic uncertainty, according to recent reports. A BDO employment index revealed near 15-year lows, mirroring trends from the 2011 financial crisis recovery. While the decline has stabilized, a significant recovery isn't expected soon. This aligns with official figures showing rising unemployment, particularly among young people, which the Office for Budget Responsibility attributes to reduced hiring rather than layoffs. A KPMG/REC report also indicates a continued fall in demand for both permanent and temporary staff in February. Despite a rise in BDO's business output index, experts emphasize the need for targeted action to address the weak labor market for genuine economic growth.

Key Entities & Roles

Key Player Opposition Context

Office for Budget Responsibility 50% Scott Knight 60% KPMG 60% Recruitment and Employment Confederation (REC) 70% United Kingdom 70% BDO ×380% Britain 90%

Keywords

job market 100% hiring demand 90% unemployment 80% labour market 70% economic uncertainty 70% economic recovery 60% cost pressures 60% permanent hires 50% business output 50%