Job vacancies have fallen at the fastest rate since 2021 as employers delay or freeze hiring amid continued economic uncertainty.

Demand for UK workers declined sharply last month after the number of permanent job opportunities dropped at the quickest pace in more than three years, according to a survey by KPMG and the Recruitment and Employment Confederation (REC).

Meanwhile, the number of temporary job vacancies dropped for the first time, albeit only slightly, since August 2020.

The latest sign of a cooling job market will increase pressure on the Bank of England to lower interest rates sooner rather than later. 

The Bank’s Monetary Policy Committee raised borrowing costs 14 times in a row before keeping interest rates unchanged at 5.25pc last month.

The number of people recruited into permanent jobs across the UK declined in February for the 17th consecutive month. 

The latest drop in placements was linked to recruitment freezes, delays around hiring decisions and fewer job vacancies as a result of the weaker economic outlook, the report found.

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