UK hiring conditions deteriorated further in July, with permanent placements and temp billings both falling amid weak employer confidence, budget pressures, and rising redundancies.

• Starting salary growth slowed for the second straight month to its weakest since Mar 2021, while temp pay inflation eased to a five-month low.
• Candidate availability rose sharply, the second-fastest pace since Dec 2020, driven by redundancies and job security concerns; permanent staff supply increased more quickly than temp supply.
• Overall vacancies fell at the fastest rate in three months, with permanent openings declining at the quickest pace since Feb and temp demand dropping at the steepest rate since Apr.
• Recruiters cited higher payroll costs and tighter budgets as key factors dampening hiring and pay growth.