Concerns over the economy seems to be preventing jobseekers from accepting new roles, even if they are on the hunt for different work.
One of Britain’s biggest recruiters, Page Group, has been hit by this reticence to such an extent that its annual profits could fall by half this year.
It said the confidence of the candidates and the companies it tries to recruit for “remains subdued”.
This meant that even when jobseekers had navigated a final interview, getting them to actually jump ship was “the most significant area of challenge”.
It now doesn’t expect there to be an increase in hiring numbers until 2025.
In recent years, inflation rose to double digits while interest rates remain at a 16 year high of 5.25 per cent.
Given current uncertainty, more employers are hiring zero-hour staff or contractors, compared to full-time employees.
There are concerns that those who choose to move job will lose their current workplace security and ultimately losing their position at their new employer.
This revelation comes shortly after recent data from the Office for National Statistics showed that the number of payrolled employees in the UK decreased by 36,000 between March and April this year.
Furthermore, the employment rate for 16 to 64 year olds was estimated at 74.3 per cent in February to April, below estimates of a year ago and a decrease for the period, while the unemployment rate was estimated at 4.4 per cent, higher than the previous year.
The issues of job nervousness seemed starkest among people who want permanent roles, who Page Group said “remain reluctant to move jobs”.
Jobs markets have faltered worldwide since the start of 2023 as weaker economic conditions have hit recruitment.
The caution comes even as inflation fell in May, with prices rising by 2.8 per cent that month compared to 3 per cent in April.
Fresh figures are due later on July 17, and many, including the new Labour government, will be hoping that inflation continues to fall and therefore helps ease the cost-of-living crisis.
Page Group, which is now predicting full-year profits of £60m compared to £118m in 2023, said that in the UK, firms continued to “defer hiring decisions” and that candidates were “cautious about accepting offers”.
This led to its gross profits within the UK falling by more than 17 per cent to £26.8m in the three months to the end of June, versus £32.5m for the same period last year.
And globally, the firm now has 7,576 staff, down from more than 9,000 at the end of 2022.