Hiring activity in the UK declined in October, reversing momentum seen in the jobs market over previous months. Data from a leading industry group indicates that the number of permanent placements fell last month at the second-fastest rate this year, as employers reduced hiring.
Vacancies also continued to decrease, although this drop was the softest recorded in over two years. Researchers attribute the fall in permanent placements, alongside the first decline in temporary billings since March, partly to increased borrowing costs from higher interest rates and energy costs impacting businesses.
KPMG UK chief executive Jon Holt noted that employers pulled back on hiring in the month leading up to the Budget, ending a period of more positive news. He added that businesses are now evaluating whether Budget measures provide enough stability to manage external pressures and higher costs.
Official data from the Office for National Statistics shows that overall vacancy levels dropped below 700,000 for the first time in over five years. However, S&P Global data, analysed by KPMG and REC researchers, suggested increased demand for workers in IT and computing, and engineering and construction.