KPMG, REC report | Jobs market shows signs of stabilisation, but hiring confidence remains weak

The UK labour market continued to cool in September, with the latest reporting showing a further slowdown in permanent hiring and pay growth. However, there are tentative signs that the downturn may be easing.

According to the latest UK Report on Jobs, compiled by S&P Global on behalf of KPMG and the Recruitment and Employment Confederation (REC), the recruitment of permanent staff fell again in September, though at the softest rate in a year. The survey of around 400 UK recruitment and employment consultancies found that many employers remain hesitant to hire amid weak economic conditions and cost pressures.

Temporary billings also declined, with the pace of contraction quickening from August.

Starting salaries near stagnation

Starting pay for permanent staff rose only fractionally in September -  the weakest increase in over four years. Recruiters linked the slowdown to reduced demand and tighter hiring budgets. Temporary pay also rose slightly, marking another month of subdued wage growth.