The main findings for October 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:
“October saw employers pull back on hiring in the month leading up to the Budget, ending a run of more positive news over recent months. Renewed geopolitical and economic uncertainty weighed on confidence, with further energy price shocks and a global bond sell-off pushing borrowing costs higher.
“Businesses will now be assessing whether the measures announced in the Budget give them enough stability to absorb the external pressures and higher costs they face. But with the Bank of England increasing interest rates and inflation set to continue rising over the coming months, there is a risk the green shoots we had been seeing in the jobs market could stall.”
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.
The main findings for October are:
Solid reduction in permanent staff appointments
October's KPMG/REC UK Report on Jobs survey showed a renewed fall in recruitment activity. Permanent placements fell for the first time in four months and solidly, with panel members often noting that employers had delayed or scaled back hiring due to economic uncertainty and rising costs. At the same time, temp billings declined for the first time since March.
Starting salary inflation improves slightly
Recruitment consultancies signalled stronger increases in starting pay for both permanent and temporary staff during October. According to panellists, efforts to attract and secure high-calibre candidates, which were often in short supply, underpinned the latest upturns in pay. That said, rates of inflation remained below their historical averages.
Demand for staff declines modestly
The seasonally adjusted Total Vacancies Index edged closer to the neutral 50.0 level in October, signalling only a modest reduction in overall demand for staff. Furthermore, the rate of decline was the softest in over two years. Permanent vacancies fell at the weakest rate since August 2024, while demand for temporary workers rose fractionally following a two-month period of contraction.
Stronger rise in staff availability
The supply of candidates rose sharply in October, with the rate of growth picking up from September's three-year low. There were widespread reports that redundancies and a lower number of job openings were central to the latest upturn in candidate numbers. Permanent staff availability rose at a quicker pace than temporary candidate numbers, with the latter expanding at one of the softest rates seen over the past three years, but still markedly overall.
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.