UK business confidence weakened sharply at the end of 2025 and hiring fell amid rising costs and uncertainty about the economic outlook, according to key business surveys. Contrasting with the prime minister’s optimistic new year message that the country was about to start feeling richer again, the jobs market weakened, with full-time and temporary appointments falling in December, according to a study by the accountants KPMG and the Recruitment and Employment Confederation (REC). Jon Holt, the group chief executive of KPMG, said: “The jobs market at the end of 2025 was still signalling caution. After a long stretch of rising
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