An increase in UK hiring even with a slight drop in vacancies suggests growing confidence among employers, according to the latest UK Report on Jobs by KPMG and the Recruitment and Employment Confederation.
Permanent hiring increased for a second consecutive month in September, marking the strongest rise in four years. The Permanent Placements Index — the report’s main hiring measure — registered 50.9, up from 50.5 in August. Recruiters surveyed noted that more companies are expanding due to a more optimistic business outlook in the UK.
Overall pay growth moderated, as companies continued to focus on controlling costs.
The latest report showed a further decline in overall demand for workers, but the rate of contraction moderated to the weakest drop in just over two years. Both permanent and temporary vacancies declined at similarly modest rates, the survey said. The report’s Total Vacancies Index crept closer to the neutral level of 50, going from 47.0 in August to 48.5 in September.
An increased preference for permanent staff has curtailed temporary hiring, which dropped to a five-month low last month.
The report, compiled by S&P Global, relied on responses from about 400 UK recruitment and employment consultancies received from 10 September to 24 September.
This “remains a fragile recovery”, Jon Holt, group CEO and UK senior partner at KPMG, said in the report.
“Businesses will be looking to the [Autumn Budget] later this month for greater certainty in tax policy and a sense that the government is willing to create the right conditions to turn this emerging confidence into investment and ultimately jobs,” Holt said.
While permanent starting salaries increased again last month, the rate of pay growth eased for the first time in four months.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
