UK permanent hiring falls again as starting pay growth quickens
British recruiters reported fewer permanent placements in October as employers delayed decisions amid uncertainty and rising costs. Temporary billings also contracted. Starting salary growth nevertheless accelerated, while candidates became more readily available. The survey showed a softer decline in vacancies, with private-sector demand improving even as public-sector recruitment remained weak. Responses were gathered before the late-October budget.
Economics & Markets··Midday
Permanent placements slip below the growth threshold
UK employers pulled back from permanent recruitment in October, while starting salaries rose more quickly. The KPMG and Recruitment and Employment Confederation survey put the permanent placements index at 46.6. Readings below 50 indicate a decline from the previous month. Recruiters attributed postponed or reduced hiring to economic uncertainty and higher business expenses.[1], [2]
S&P Global compiled the survey from around 400 recruitment and employment consultancies, collecting responses between October 12 and 26. This puts the fieldwork before the late-October budget. The South of England recorded the sharpest fall in permanent placements, followed by a marked decline in the Midlands. London and the North recorded only small increases. The responses cover permanent appointments as well as temporary staffing activity.[1]
Temporary billings weaken as vacancy declines ease
The temporary billings index fell to 48.9, marking its first contraction in seven months. Consultancies cited contracts ending, fewer new opportunities and weak confidence around new projects. The total vacancies index edged from 48.5 to 48.7: demand was still falling, but at its slowest pace since August 2024. Permanent vacancies declined more slowly, while temporary opportunities increased slightly after two months of falls.[1]
Private-sector demand increased for permanent and temporary workers. Public-sector demand continued to decline in both categories. Permanent demand rose in six of ten categories, led by information technology and engineering. Retail and hotel and catering registered the sharpest declines. Temporary demand increased in four categories, with blue-collar roles leading and retail weakest.[1]
The candidate availability index increased from 57.2 to 59.4, extending the rise in available workers to 44 consecutive months. Consultancies pointed to fewer openings and redundancies. Starting salary growth accelerated but remained below its long-run average. Temporary workers’ pay also rose slightly faster than in September, with London showing the strongest increase among the monitored regions.[1]
