Permanent hiring in the UK fell to a reading of 44.1 in May, well below the neutral 50 mark and marking the 44th straight month of contraction. Recruiters also noted a sharp rise in temporary contracts as firms seek flexibility amid uncertainty.

Behind the Data

The KPMG and REC report shows businesses are delaying permanent hires due to domestic and global uncertainty, including Middle East tensions. This longest contraction streak since 1997 signals a fragile...