Summary of Key Findings from REC’s UK Report on Jobs – October Survey

The latest insights from the KPMG and REC “Report on Jobs”, compiled by S&P Global, provide a comprehensive overview of the UK employment market in October. This monthly survey, which draws on data from approximately 400 UK recruitment and employment consultancies, highlights key trends and challenges facing the job market as economic uncertainty persists. October saw the steepest fall in permanent placements since March, while salary growth for new hires continued to slow. This summary outlines the primary findings from REC’s report, detailing how reduced demand, hiring freezes, and sectoral variations are shaping the employment landscape.

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Decline in Permanent Placements and Temporary Billings

The October survey shows a further decline in both permanent and temporary job placements, with the rate of contraction accelerating. This ongoing downturn, the sharpest since March, is linked to an environment of economic caution, with firms reportedly pausing hiring while awaiting clarity from the late October government Budget.

Softening of Salary Growth for Permanent Roles

The trend of slowing salary growth continued in October, with permanent salary rates reaching their lowest level since February 2021. While companies are still offering higher salaries for top candidates, overall demand for workers has waned, limiting the extent of salary increases. Temporary pay rates did see slight improvement after stagnating in September, although this growth remains below historical averages.

Accelerating Decline in Job Vacancies

For the twelfth consecutive month, vacancy numbers decreased in October, with the rate of decline accelerating to its steepest since early 2021. Demand for both permanent and temporary staff contracted, reflecting cautious hiring approaches across the market as businesses responded to economic pressures and decreased staffing needs.

Rise in Staff Availability

As demand for roles continued to decline, staff availability increased for the twentieth month running in October. This uptick in candidate supply was further supported by rising redundancies. Notably, temporary staff availability saw the sharpest increase since December 2020, underscoring the shift in hiring activity.

Regional and Sector-Specific Trends

The drop in permanent placements was observed across all regions in England, with the South experiencing the most significant decline and London showing the smallest decrease. Temporary placements similarly saw steep declines in London and the South, whereas the Midlands registered positive growth. At the sectoral level, all industries except Blue Collar and Engineering reported reduced demand for permanent roles, with Retail and IT & Computing seeing the sharpest contractions. For temporary roles, only Blue Collar vacancies grew slightly, while Executive & Professional and IT & Computing faced the largest declines.

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