The UK jobs picture remained stagnant in September, with demand for staff still weak as more people are available for work, the UK Report on Jobs from KPMG UK and the Recruitment and Employment Confederation (REC) said.
The report’s main hiring measure, the Permanent Placements Index, was below the neutral level of 50 at 44.8, extending the current run of reduction to three years. The pace of contraction was, however, the softest seen over the past 12 months, according to the report, which was published Friday.
In August, the Permanent Placements Index was 44.2.
Reports from recruiters indicated that low employer confidence, often due to weak economic conditions, and higher staffing costs had led businesses to cut back or freeze recruitment.
Demand for staff
Demand for staff remained weak, as shown by the seasonally adjusted Total Vacancies Index posting of 43 in September, a negligible change from 42.9 in August. Demand for workers has fallen in each month for nearly two years, the report said.
The lack of positive news about the economy and speculation about the UK’s Autumn Budget mean “it is understandable that employers are cautious with their hiring”, Jon Holt, group chief executive and UK senior partner of KPMG, said in a news release.
Workers available
Meanwhile, more workers were on the market. Recruiters across the UK indicated another sharp rise in the number of candidates available for permanent jobs in September, although the 65.5 value was lower than the August record of 70.2. Still, the rate of growth was the third sharpest since November 2020, the report said.
Salaries stagnate
Permanent starters’ salaries stagnated in September with the seasonally adjusted index at 50.2. The marginal increase in pay was the slowest since the current run of inflation began in March 2021, the report said.
Temporary workers
Temp billings declined for the 15th straight month to a value of 46, the report said, while demand for temp workers declined slightly to 45.9 in September from 46 a month earlier.
Meanwhile, nearly three times as many recruiters (35%) recorded an increase in temporary candidate supply than those that saw a reduction (12%), the report said. Growth in temp pay fell to an eight-month low.
Report methodology
For the report, S&P Global compiles responses to questionnaires sent to about 400 UK recruitment and employment consultancies.
— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.
