According to the Recruitment and Employment Confederation (REC) monthly report, British businesses’ spend on temporary staff rose at the weakest rate in over six years in May 2019. Hiring of permanent employees has also come down, suggesting that the UK labor market may be in trouble.

Official data reveals that unemployment had fallen to 3.8% in Q1 2019, its lowest levels since 1975. According to the Bank of England, the fall in hiring could be a result of companies delaying their business investments until all uncertainties surrounding Britain’s departure from the UK are sorted out.

According to REC chief executive Neil Carberry, ““Overall, though, the survey again shows what uncertainty does to hiring plans. Total permanent placements fell again this month while temporary billings grew only marginally.”

REC’s data also reveals that starting salaries for permanent employees has registered the weakest rise in over two years. However, pay rise for temporary staff was the strongest in six months.