Key facts
- Total staff availability in the UK rose at its fastest rate in three months in August.
- Permanent hiring saw its first recovery in nearly four years, with the index rising to 50.5.
- Temporary billings expanded to 52.4.
- Overall demand for workers decreased for the 34th consecutive month.
- Nationwide vacancies fell to 707,000, the lowest level since November 2014, excluding the pandemic period.
The UK jobs market experienced a significant increase in job seekers in August, driven by rising redundancies and employment insecurity. This surge occurred despite the permanent hiring market showing its first signs of recovery in nearly four years, according to a report by KPMG and REC.
Total staff availability rose at its fastest rate in three months as individuals actively sought new roles. Permanent job placements managed a marginal uptick, with the index breaking above the neutral 50.0 mark for the first time since September 2022. Temporary billings also expanded, indicating a preference for flexible, short-term contracts among employers.
Despite these encouraging signs in permanent hiring, overall demand for workers continued to decline for the 34th consecutive month. Nationwide vacancies fell to 707,000, the lowest non-pandemic level recorded since November 2014. The retail and hospitality sectors saw the steepest drops in job openings, while public sector labor demand contracted for both permanent and temporary positions.
KPMG's Jon Holt noted that while the recovery in hiring is encouraging, the jobs market is still contracting overall. He suggested the upcoming Budget presents an opportunity for the government to build on this positive momentum. REC's Maxine Bligh emphasized the need for government support for businesses, advocating for pragmatism on employment rights and a Budget that instills confidence in employers to hire, invest, and grow.