The labour market in Britain remained in a state of deep contraction during May, although the rate of contraction improved since the previous month. According to a recent report by the REC, the monthly index the measures the demand for staff across British companies rose from a record low of 9.3 in April to 19.3 during May, but remained well below the 50-threshold indicating contraction.

Demand for staff only increased in the medical and nursing care sector amid the coronavirus pandemic, while all other sectors saw demand reduce as a result of the continued lockdown in the country. The worst hit sectors included retail and hotel and catering where demand crashed.

Chief executive at REC, Neil Carberry, observes, “Given the impact of the lockdown in early May, it’s no surprise that these figures look bleak. But in the two weeks since this data was collected, lockdown rules have been eased and the feedback we get from recruiters every day suggests that the slight improvements that we can see in the placements and vacancies data have continued.”

With Britain easing its lockdown and allowing organisations to resume operations gradually, business leaders remain hopeful that their companies could start working towards recovery and this could translate to a rise in the demand for new staff over time, at least in some sectors.