UK Report on Jobs – September
The KPMG/REC “Report on Jobs” is unique in providing the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies, including Glencourt Associates, and employers to provide the first indication each month of labour market trends.
Staff appointments continued to fall in September
The latest Report on Jobs survey indicated a further fall in the number of permanent staff placements. The downturn in appointments now extends to two years, although the latest contraction was slightly softer than August’s five-month record. Uncertainty in the outlook around government policy ahead of late October’s Budget, meant companies were cautious in their hiring activity. Temp billings also declined in September, and at the steepest rate since April.
Permanent pay inflation softened during September
Although there remained reports of shortages in suitable candidates, which helped to boost pay rates, permanent staff salary growth eased again in September. It was the third month in a row that salary inflation has fallen, and September’s reading was the lowest since February 2021. A greater number of candidates and reduced demand helped to limit pay growth, according to panelists. Temp rates meanwhile were fractionally lower, putting an end to a three-and-a-half-year run of inflation.
Vacancy numbers continued to decline
Latest survey data showed an eleventh successive monthly fall in staff vacancies. Moreover, the pace of contraction accelerated to the steepest since March. Both permanent and temp vacancies declined at similarly modest rates during September. Private and public sector permanent staff vacancies declined during the month although the steeper contraction was again registered for public sector workers.
Staff availability rose
Amid reports of increased redundancies and lower demand for workers, the overall availability of staff to fill positions increased again in September. Overall growth was again steep, despite easing to its lowest level since February. Similar trends were seen for both permanent and temporary workers.
Additional information behind these headlines is available from Glencourt Associates – www.glencourtassociates.com
Source: KPMG & REC “Report on Jobs” prepared by S&P Global.
