Recruitment giant sounds alarm over ‘longest jobs downturn’

Group 1: Job Market Overview - The UK's job market is experiencing the "longest downturn" ever seen by recruiters, worse than the periods following the global financial crisis and during the pandemic [1] - Employers are cutting back on hiring due to increased worker costs from Labour's policies, including a 4.1% rise in the minimum wage to £12.71 per hour starting in April [1] - The joblessness rate in Britain has risen to a record 5.2% at the end of 2025, with forecasts predicting it will reach 5.3% this year and potentially 5.5% by year-end [2][3] Group 2: Company Performance - Robert Walters reported a £19.6 million loss for the year, marking a decline in job placements for the third consecutive year, which resulted in decreased fees [4][3] - The company has cut its UK workforce by nearly 25% in response to the challenging market conditions [4] - Shares in Robert Walters fell over 7% amid a broader sell-off of recruitment stocks, with PageGroup also reporting a significant 60% drop in profits [5] Group 3: Impact of Legislation and Technology - The upcoming Employment Rights Act is expected to introduce new protections for workers, which may lead to increased red tape for employers and hinder hiring [2] - The rise of AI is disrupting demand for junior and graduate workers, as employers are utilizing technology for more menial tasks, impacting younger generations seeking employment [4]