The number of individuals seeking employment in the UK saw a sharp increase in August, driven by a rise in redundancies and heightened concerns over job security. This influx led to total staff availability rising at its fastest rate in three months, according to the latest employment report from KPMG and recruiter REC.
Despite this, the permanent hiring market showed its first signs of recovery in nearly four years. Permanent job placements experienced a marginal uptick, with the index reading 50.5, indicating growth for the first time since September 2022. Temporary billings also expanded to 52.4, as employers reportedly favoured flexible, short-term contracts.
However, the overall demand for workers continued to fall for the 34th consecutive month. Nationwide ONS vacancies dropped to 707,000, marking the lowest non-pandemic level since November 2014. Retail and hospitality sectors experienced the steepest declines in job openings, while public sector labour demand contracted across both permanent and temporary roles.
Jon Holt, group chief executive and UK senior partner at KPMG, noted that while the uptick in hiring is encouraging, the jobs market continues to contract overall. Maxine Bligh, interim chief executive of REC, cautioned against taking the job market for granted, urging the government to support businesses.