October survey data pointed to a relative improvement in recruitment conditions in the UK. While hiring for permanent roles remained below a neutral level, temporary employment opportunities rose in a monthly report.
The UK Report on Jobs, by KPMG UK and the UK Recruitment and Employment Confederation, showed the rate of reduction for permanent staff appointments easing for the fourth straight month, but the drop was the softest since July 2024.
The Permanent Placements Index — the report’s main hiring measure — rose to 45.2 in October from 44.8 in September, well below the neutral level of 50 but considerably above June’s reading of 39.1.
Conditions for temporary workers improved significantly. Temporary billings recorded an index reading above 50 for the first time this year at 50.2. It marked the first expansion since June 2024, continuing a trend of hiring temporary workers amidst subdued employer confidence.
Despite signs of stabilisation, further decline across job postings signified little change to the overall demand for staff. The Total Vacancies Index for October was 43.2, a slight increase from September (43) but still under the 50 no-change threshold — and moderately below the 46.6 reading in May.
The latest vacancy data further emphasises employers’ hesitance to fill permanent contracts. Since May, permanent vacancies have fallen at a steeper rate than postings for temporary staff.
While employers remain optimistic about their growth prospects, managers don’t have enough strong economic signals to commit to building their workforce with permanent hires, Jon Holt, group CEO and senior partner at KPMG UK, said in the report.
Staff availability has risen in each of the past 32 months in the UK, and the increase in those seeking both permanent and temporary jobs in October was among the steepest seen since late 2020, the report said.
“Economic uncertainty continues to weigh heavy on business,” Holt said, “but further stabilisation in the jobs market last month indicates that [an Autumn] Budget that builds business confidence could be a catalyst for renewed hiring.”
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