Review of the UK Jobs Market – October 2025
Welcome to our Review of the UK Jobs Market for October. 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:
-
- Slight rise in temp billings…
- …while permanent placements fall at weaker pace
- Starting salaries increase marginally and temp pay stagnates
______________________________________
Staff Appointments
Decline in permanent placements moderates again in October
As has been the case since October 2022, Permanent staff appointments across the UK declined at the start of the final quarter for 2025. That said, the rate of reduction eased and was the softest seen since July 2024. Lower placements were linked to uncertainty around the economic outlook and the upcoming budget, leading to delays in hiring. Greater staffing costs also impacted hiring.
Marginal rise in temp billings
Though only marginal, October saw a renewed increase in billings received from the employment of short-term staff. A preference for temp workers over permanent staff to fill roles helped lift billings. that said, relatively subdued overall demand for staff amid a weaker economic climate had dampened the rate of growth.
______________________________________
Vacancies
Vacancy continue to fall sharply
Data broken down by job type signalled further marked falls in demand for both permanent and temporary workers at the start of the fourth quarter. Permanent vacancies continued to fall at a steeper rate than that seen for temporary staff, despite the latter seeng pronounced contraction for six months.
Latest official labour market data published by the Office for National Statistics indicated a further decline in overall vacancies in the three months to September. That said, the latest reduction (9,000) was the smallest recorded since the three months to February. Nevertheless, the sustained fall in demand for staff pushed down the total number of vacancies to 717,000, which was the lowest seen in nearly four-and-a-half years.
______________________________________
Staff Availability
Upturn in permanent labour supply eases only slightly
October survey data signalled a sustained upturn in the availability of workers seeking permanent roles, thereby stretching the current rate of expansion to 32 months. The latest increase was attributed to a combination of redundancies and fewer job opportunities. Although easing for the second month straight, the rate of growth was nevertheless among the quickest recorded since late 2020.
Slower, but still rapid expansion in temporary candidate numbers
Growth of temporary market labour supply eased further from August’s post-pandemic peak, but remained rapid overall. According to anecdotal evidence, fewer contract roles, hiring freezes and company layoffs had pushed up temporary candidate numbers.
______________________________________
Pay Pressures
Starting salary inflation remains marginal in October
Salaries awarded to new permanent staff across the UK continued to increase at the start of the final quarter. Rising pay was mainly to secure high calibre candidates. However there were also frequent reports of salaries levelling off or even falling due to weaker market conditions.
Temp pay rates broadly stagnate
October signalled broadly stagnant oay for short-term workers. this ended a one-year period of growth. Less demand for staff and increased candidate availability had dampened pay pressures.
______________________________________
Source: KPMG and REC UK Report on Jobs 14th November 2025
Review of the UK Jobs Market – April 2026
12 May 2026Welcome to our Review of the UK Jobs Market for February. 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: Stronger, but modest decline in permanent placements… …while temp billings expand for first time in […]
Why Managing Salary Expectations is Key to Hiring Success in Facilities Management
27 April 2026Recruitment in the Facilities Management (FM) industry can sometimes feel like navigating a maze, especially when it comes to salary expectations. On one side, you have candidates with their own ideas of what they’re worth. On the other, you’re balancing budgets and trying to stay competitive in a tight employment market. If those two sides […]
How the April 2026 Employment Rights Changes May Impact FM Employers
27 March 2026April 2026 is set to bring significant updates to UK employment laws – changes that Facilities Management (FM) businesses will need to factor into their day-to-day operations. From strengthened sick pay rights to tougher redundancy rules and a new enforcement body, these developments will affect how FM employers manage their people, especially in sectors with […]