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 and employers to provide an indication each month of labour market trends.

• Steepest decline in permanent staff placements since March
• Weakest rise in permanent starting pay since early 2021
• Vacancy numbers fall again in October

Jon Holt, Group Chief Executive and UK Senior Partner KPMG, said: “Uncertainty over the Autumn Budget saw businesses continue to put hiring plans on hold during October leading to the steepest contraction in permanent staff appointments since March. But employers didn’t turn to temporary staff to fill gaps, with these appointments also facing their biggest reduction in seven months. “While businesses are still willing to pay more for top talent, the growing pool of available candidates means salary inflation was at its weakest since early 2021.

October sees further decline in staff appointments
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. Similar factors led to the steepest reduction in temp billings for seven months.

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 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 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.

Official data: UK job vacancies Vacancy Index
Declining for a twenty-seventh successive period, the number of vacancies in the UK maintained a downward trend in the three months to September. Overall, vacancies were down 34,000 compared to the three months to June and therefore taking the overall total to 841,000. That’s the lowest level since the three months to May 2021.

Out of 8 sectors surveyed the “tech sector” (IT and Computing) showed the steepest decline in both permanent and temporary vacancies in October.

 What shall be interesting to see is if this is now the bottoming out of the curve with UK budget and US election’s completed will we start to see things lift?

Enigma People Solutions is an award-winning technology recruitment consultancy. We find technical leaders for the emerging and enabling technology industries. Visit our services page for more information. Visit our job search page for the latest vacancies in photonics, electronics, semiconductor, software and IoT in Scotland and the UK. Check out our blog page for the latest in the technology industry. You can get in touch with us hello@enigmapeople.com or call us on + 44 131 510 8150