Virus wreaks havoc on jobs as number of permanent appointments falls

The coronavirus crisis is ‘wreaking havoc’ on the UK jobs market, a new report has showed.

Businesses have put hiring plans on ice since March, according to data from KPMG and the Recruitment and Employment Confederation.

The number of permanent staff appointments and temporary posts fell in April at the sharpest rate in the survey’s 22-year history.

And as companies lay off workers, despite the Government’s furlough scheme which pays 80 per cent of their wages, staff availability shot up at the quickest rate since November 2009.

The worst decline in demand for permanent staff was in the hotels and catering sector, while the nursing, medical and care category was the only one to see higher demand.

Permanent starting salaries declined at the quickest rate since March 2009 and short-term staff pay dropped the most since July 2009.

James Stewart, vice-chair at KPMG, said: ‘The pandemic continues to wreak havoc on the UK jobs market with a record drop in vacancies and recruitment plans frozen.

‘We estimate as many as 13m jobs are highly affected by the lockdown, just over a third of all jobs. 

It’s an unprecedented situation for UK business, and resilience, then recovery, is key to navigating through the crisis. 

‘All eyes will be on the forthcoming announcement on easing restrictions so confidence can start to rebuild.’