Key facts
- Permanent staff placements gauge fell to 46.6 in October from 50.9 in September, the lowest since May, per the survey.
- Temporary staff hiring fell to 48.9 from 50.9, the first fall since March, the survey showed.
- Vacancies for permanent jobs contracted at the softest pace since August 2024, while temporary vacancies rose marginally.
- The survey of around 400 consultancies ran from October 12 to October 26, before finance minister John Healey's October 28 budget.
- KPMG's Jon Holt said higher rates and rising inflation risk stalling the green shoots seen in the jobs market.
Britain's jobs market cooled in October while starting salaries for permanent jobs rose at a faster pace, according to a survey of recruiters by the Recruitment and Employment Confederation and accountants KPMG, published on November 9, 2026.
The survey showed hiring for permanent roles fell for the first time in four months. Its permanent staff placements gauge fell to 46.6, the lowest since May, from 50.9 in September, partly due to firms' concerns about the economy and rising costs. Temporary staff hiring fell to 48.9 from 50.9, the first fall since March. The availability of candidates for permanent and temporary roles edged up, vacancies for permanent jobs contracted at the softest pace since August 2024, and those for temporary roles rose marginally.
The survey of around 400 recruitment and employment consultancies was conducted between October 12 and October 26, before finance minister John Healey's budget on October 28. The body said Healey's first annual budget did little to shift the outlook for growth or inflation.
The Bank of England raised interest rates by a quarter-point to 4% in the week before the survey's publication, and its policymakers warned that at least one more increase was likely if the US-Iran conflict continues. Investors see at least two 25 basis-point hikes in 2027, according to the report.
Jon Holt, group chief executive and UK senior partner at KPMG, said: "Businesses will now be assessing whether the measures announced in the Budget give them enough stability to absorb the external pressures and higher costs they face." He added: "But with the Bank of England increasing interest rates and inflation set to continue rising over the coming months, there is a risk the green shoots we had been seeing in the jobs market could stall."