UK Report on Jobs – October
The key points from the KPMG and the REC’s October Report on Jobs are provided below. Glencourt Associates is one of the large panel of companies asked to provide data for this report. More in-depth data is available from post@glencourtassociates.com.
Fall in Permanent Placements & Further Slowdown in Salary Growth
Budget Uncertainty Leads to Decline in Placements
The KPMG/REC Report on Jobs survey signalled a further decline in permanent placements during October, extending the current period of contraction to over two years. The rate of contraction also accelerated, reaching its steepest since March. There were reports of recruitment freezes at firms amid ongoing business uncertainty ahead of the late October government Budget. Uncertainties regarding the Labour government’s Budget also led to the steepest reduction in temp billings for seven months.
Salary Growth Softens
Permanent salary growth continues to soften in October Permanent pay growth sustained its recent downturn in October, falling to its lowest level since February 2021. Although some firms were willing to raise starting salaries for high quality candidates, increased staff availability and reduced demand for workers weighed on growth. Temp rates meanwhile increased following little change in September, but the rate of growth was modest and well below the survey’s historical trend level.
Vacancies Contiue to Fall
Vacancies fall at accelerated rate. Demand for staff continued to decline during October, falling for a twelfth successive month. The rate of contraction also picked up, reaching its steepest since the start of 2021. Once again, declines in vacancies were common for both permanent and temporary staff workers.
Staff Availability Improves
Staff availability rises again. The overall availability of staff continued to increase steeply during October. Lower demand for workers and reports of redundancies underpinned the twentieth successive monthly rise in availability. The increase in temps was notable in being the sharpest recorded by the survey since December 2020.
Source: KPMG & REC Report on Jobs
