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\t\tJobs were cut at a faster pace in March.\t<\/p>\n\t\t\tMonday 13 April 2026 12:01 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tSaturday 11 April 2026 3:14 pm\n\t<\/p>\n
\t\tJobs were cut at a faster pace in March.\t<\/p>\n
Businesses slashed jobs at the fastest pace in 2026 as employers also resisted giving staff big pay increases over March, research has suggested, exposing the Iran war\u2019s damaging effects on all sides of the UK economy.\u00a0<\/p>\n
Research by the Recruitment and Employment Confederation (REC) and KPMG said there was a steeper rise in the number of job seekers<\/a> over March.\u00a0<\/p>\n The rise in the availability of candidates was caused by higher numbers of redundancies and general job scarcity, according to researchers, leaving the UK jobs market exposed to damage from the war in Iran as the effects trickle through over the coming weeks.\u00a0<\/p>\n Analysts suggested high street stores<\/a> were worst affected, with retail and hospitality \u201cstruggling\u201d from difficult conditions on labour costs and softer demand from consumers.\u00a0<\/p>\n The permanent placements index, which measures the numbers of people in full-time roles, slightly improved from last month but continued to point to a decline in jobs.\u00a0<\/p>\n Temporary recruitment also fell more slowly than in March while the number of vacancies also dropped across both the private and public sector.<\/p>\n Jobs market weakens furthe<\/p>\n Jobs figures for March may leave economists and policymakers conflicted, with data in March not showing a marked break from trends over several months.\u00a0<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tConstruction firms slash jobs after biggest-ever cost inflation rise\u00a0<\/a><\/p>\n However, there may be concerns that turbulence in trade across the Middle East could rattle businesses over the next few months, with the overall jobs market already suffering from a higher level of unemployment and a sustained decline in vacancy numbers.\u00a0<\/p>\n REC chief executive Neil Carberry said the Labour government\u2019s cost of living focus could be helped by tackling \u201cthe rising cost of doing business\u201d.\u00a0<\/p>\n \u201cThe Gulf Conflict provided a headwind to hiring in March but this did not stop the trend of stabilisation that has defined 2026 so far,\u201d Carberry said.\u00a0<\/p>\n \u201cBusiness prospects for 2026 remain finely balanced, and confidence will be key. Households and businesses are still sitting on cash that might be put to work in the economy if the climate is right, boosting growth and particularly helping struggling consumer-facing<\/a> sectors.\u201d<\/p>\n Data collected by the two organisations also showed that starting salaries increased at the weakest rate in five months, suggesting that pay growth is slowing.\u00a0<\/p>\n