UK permanent job placements hit 15-m low

The UK labour market continued to deteriorate in November, with permanent job placements falling at their fastest pace since August 2023, according to the KPMG and REC Report on Jobs compiled by S&P Global.

Recruitment consultants attributed the decline to reduced demand for staff, as businesses reassessed hiring plans following the late October government budget.

Vacancy numbers dropped sharply, marking the steepest reduction since August 2020, with executive and professional roles seeing the largest decline. Temporary staff billings also fell for the fifth consecutive month, driven by uncertainty across sectors.

Salary growth remained modest, hovering near October’s 44-month low, as higher staff availability limited pay increases. Redundancies contributed to the steepest rise in candidate availability in three months, particularly for both permanent and temporary workers.

Regionally, the South of England reported the sharpest decline in permanent placements, while temporary roles saw broad-based reductions, with the North of England leading the drop.

Sectors such as IT and executive positions were the hardest hit, highlighting ongoing challenges in the UK’s employment landscape.

Credit: S&P Global

Subediting: M. S. Salama