UK companies hire the most in 23 years after Covid-19 lockdown loosens

UK companies are on a hiring spree after the government relaxed lockdown rules, employing permanent staff at the fastest pace in 23 years and advertising the most vacancies in three years.
 
The figures from the consultant KPMG and the online job placement agency Adzuna add to evidence that the economy is bouncing back strongly from last year’s recession. That will feed into the Bank of England’s debate on when to ease off on its stimulus. “The jobs market seems to be firing on all cylinders, and we need this momentum to continue for our economy and businesses to fully bounce back,” sa­i­d Claire Warnes, partner at KPMG.
 
The Office for National Stati­stics released real-time data on Friday showing more parts of the economy are bouncing back from rules that closed most non-esse­ntial stores and restaurants thr­ough the first quarter of the year.
 
Improved confidence among consumers and businesses boosted demand for staff to a near-record rate while the pool of available workers shrank at the fastest rate in four years, according to a survey from KPMG and the Recruitment and Employment Confederation. Relaxed restrictions lifted their Permanent Placements Index to 67.4, showing strong growth.

 
Staff shortages worsened for the third month running, with recrui­ters saying lingering unce­rtainty from the pandemic and the furlough scheme weighed on the availability of permanent candidates, KPMG and REC said. The pool of available temporary staff also dried up significantly, driven by strong dem­and, fewer workers from the EU and the reluc­tance of some to seek new roles during the Covid-19 crisis. In Britain, hospitality companies were among the hardest hit by rules that closed leisure venues and pushed workers onto the government’s furlough wage subsidy program.