The main findings for September 2026 from the latest UK Report on Jobs, sponsored by KPMG and the REC (Recruitment & Employment Confederation), are as follows (the full report is available on request – just email me at c.booth@swindaleparks.co.uk and I’ll send you a copy).
The 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 the first indication each month of labour market trends.
Commenting on the latest survey results, Jon Holt, Group Chief Executive and UK Senior Partner KPMG, said:
“For the second month in a row we are seeing the jobs market starting to flicker back to life, with businesses increasing their hiring across both permanent and temporary roles, and for the first time in over two years vacancies grew in the private sector.
“But this remains a fragile recovery; and in some sectors it could be seen as an employer’s market as the number of people looking for roles increases. The growing uncertainty around energy prices and higher borrowing costs also means there are still headwinds in the wider economy. Businesses will be looking to the Budget later this month for greater certainty in tax policy and a sense that the Government is willing to create the right conditions to turn this emerging confidence into investment and ultimately jobs.”
Maxine Bligh, Interim Chief Executive at the Recruitment and Employment Confederation (REC), said:
“The permanent jobs market is revving its engine, with a second successive month of growth. The last time we saw a sustained run of growth in permanent placements was between March 2021 and September 2022. If this trend continues, we could see genuine momentum building across the labour market, with both permanent and temporary hiring moving in the same direction, which is encouraging for jobseekers and the economy. The signal from the private sector is that it is ready to invest, with permanent vacancies rising for the first time in more than two years across the sector. A Budget that gets business confidence moving again is key to keeping that momentum going”.
The main findings for September are:
Permanent placements rise for second month in a row
The KPMG/REC UK Report on Jobs survey signalled a back-to-back rise in permanent placements during September. The rate of growth picked up slightly from August and, though marginal, marked the strongest rise in four years. The upturn was supported by rising activity levels at employers and efforts to expand capacity amid improved business confidence. Temp billings also expanded in September, though growth was the least pronounced in five months.
Permanent pay inflation softens in September
While competition for highly skilled workers continued to add upward pressure on rates of starting pay, permanent salary growth slowed for the first time in four months in September and remained below the historical average. There were reports that cost considerations and increases in staff availability had tempered inflation. Temp pay rates likewise rose at a softer pace, with the rate of growth easing to a four-month low.
Vacancy numbers fall at softest rate since August 2024
Latest survey data indicated a further decline in overall demand for workers. However, the rate of contraction moderated to the weakest in just over two years and was only mild. Underlying data showed that both permanent and temporary vacancies declined at similarly modest rates in September. Data broken down by the private and public sectors - which are not seasonally adjusted - indicated the first improvement in demand for permanent private sector staff for over two years.
Staff availability rises at weakest pace in three years
The availability of candidates to fill roles continued to increase in September amid reports of redundancies and fewer job opportunities. Whilst sharp, the rate of expansion was the slowest in three years, driven by a softer rise in permanent candidate supply. Notably, the latter increased at the weakest rate since September 2023, while growth in temporary candidate numbers was the fastest in three months.
Hopefully this will provide you with a useful insight into a myriad of critical recruitment topics including hiring activity, candidate availability and salaries. As you strive to keep your current employees happy and attract the best new talent to help your company grow you may find some of the content very useful.
If you want to discuss any of the above or any other recruitment-related issues, then please don’t hesitate to contact Carl Booth on 07766552676.
Swindale Parks Recruitment is over 30 years old – we have lots of hiring experience to share.