Review of the UK Jobs Market – September

Welcome to our Review of the UK Jobs Market for September. Each month, we share market insight on the state of the UK jobs market.

You can either read our short blog, or see our infographic.

The main findings were:

• Staff appointments continue to fall
• Permanent pay inflation softens during September
• Vacancy numbers continue to decline
• Staff availability rises markedly

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Staff Appointments

For the third month in a row, temp billings decling during September. The rate f contraction also accelerated, reaching its steepest since April. There has been a lack of demand amid tight client budgets and an uncertain business environment. London recorded the steepest reduction. In contrast, there was a marginal increase in the Midlands.

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Vacancies

Vacancy numbers continue to decline

Permanent vacancy numbers maintained their recent downward trend in September, falling for a thirteenth successive month. The rate of contraction was also the steepest recorded dince March. Temp staff demand meanwhile fell for a second month in a row and, although modest, the rate of contraction was the fastest since July 2020.

Latest data from the ONS indicated a further fall in the number of vacancies during the three months to August. It was the twenty-sixth month in a row that a quarterly decline has been registered, with the latest contraction the steepest of the year-to-date. The overall number of vacancies was 857,000 – some 140,000 lower than a year ago. However, vacancy numbers are still some 61,000 higher than on the eve of the 2020 global pandemic.

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Staff Availability

Staff availability rises markedly

The availability of staff to fill permanent cancaices increased steeply again in September, extending the current period of growth to 19 months. The rate of expansion dud however soften, easing to its lowesr since February. The increases have been linked to higher redundancies and a lack of demand for staff.

For the nineteenth successive month, an increase in temp availability was registered in September. The latest expansion was also sharp, despite easing to its lowest since February. Less vacancies and more people out of work led to the increase in temp availability.

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Pay Pressures

Although typical starting salaries increase for a forty-third successive month in September, the rate of inflation was relatively modest. Shortages of suitable labour continuted to push up salaries for higher calibre candidates. However salary inflation was limited by the greater availability of job hunters and cooling market demand.

Source: KPMG and REC UK Report on Jobs 7th October 2024