UK hiring activity saw a slight improvement in September, with permanent staff placements rising at their strongest pace in four years, according to the latest KPMG and REC Report on Jobs. While temporary billings increased more modestly, demand for workers declined at the slowest rate in over two years. Pay growth, however, moderated.
The slight improvement in hiring activity and the slowest decline in demand for workers in over two years suggest a potential stabilization in the UK labor market. However, moderating pay growth could indicate easing inflationary pressures, which may influence future Bank of England monetary policy decisions.
The UK labour market showed signs of recovery in September, with permanent staff placements increasing at their fastest pace in four years, according to the latest KPMG and REC Report on Jobs. The survey, compiled by S&P Global, indicated that while temporary billings also rose, the growth was more modest. Demand for workers declined at the slowest rate in just over two years.
Pay pressures eased during the month. Permanent salary growth slowed for the first time in four months and remained below the historical average, influenced by cost considerations and increased staff availability. Temporary wage inflation also softened, reaching its lowest point since May.
Staff availability continued to increase, driven by reports of redundancies and fewer job opportunities, although the overall rate of growth was the slowest in three years. The North of England saw the most significant rise in permanent placements, while London experienced a sharp reduction in temporary billings. Sectors like IT & Computing and Engineering saw increased demand for permanent staff, whereas Retail and Hotel & Catering experienced the steepest falls in vacancies.
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