'Marked' fall in hiring as firms prepare for higher wage bills from April

Companies are putting the brakes on hiring new staff amid a "subdued" economic outlook and rising wage bills, according to the latest business surveys.

- Joanna Partridge

In signs of a weakening UK labour market, the consultancy KPMG and the recruitment firm REC said a "marked" decline in the number of people being placed in permanent and temporary roles continued in February, although hiring declined at a slower pace than in January.

It came as a separate survey showed that unemployment was rising, as businesses prepare for a rise in labour costs in April, dragging the employment index from business advisory and accountancy firm BDO down to levels not seen since the wake of the global financial crisis.