The UK’s job market is facing a slowdown with employers holding back on hiring due to rising costs and weak demand. New KPMG and REC data shows recruitment activity remained sluggish in July, reaching its lowest point in two years, far from the 50 mark that signifies growth. This uncertainty is contributing to a growing hiring freeze in sectors like hospitality, retail, and social care. 75% of employers are hesitant to hire in the next three months, according to a survey by Chartered Institute of Personnel and Development (CIPD). Many small businesses face pressure due to the April increase in National Insurance contributions, squeezing their margins further and leading them to delay hiring or even consider redundancies. This comes amidst looming tax hikes, creating additional financial strain for employers. The overall effect is a hesitant job market, with economists warning of delays in hiring decisions until well into 2025 unless targeted government support emerges.