The UK jobs market is beginning to "flicker back to life," a new report from KPMG and recruiter REC has stated, following increases in permanent and temporary placings last month. Permanent hiring grew for the second consecutive month, reaching a four-year high of 50.9. Temporary billings also increased to 50.9, marking the slowest pace in five months. An index reading above 50.0 indicates growth.
While overall demand for workers decreased in September, the rate of this contraction was the weakest recorded since August 2024. Notably, permanent private-sector vacancies saw an increase for the first time in over two years. Jon Holt, group chief executive and UK senior partner at KPMG, described the situation as a "fragile recovery," citing ongoing uncertainty around energy prices and higher borrowing costs as economic headwinds.
The pool of available workers across the UK expanded, with the staff availability index dropping to 57.2 from 60.6. The North of England experienced the largest surge in both permanent and temporary candidate availability, while London recorded the softest growth in permanent applicants.
Businesses are reportedly looking to the upcoming Budget for greater certainty in tax policy and conditions that could foster investment and job creation. Chancellor John Healey is scheduled to deliver his inaugural Budget on 28 October.