The number of individuals seeking employment has surged whilst growth in starting salaries remained "fractional", according to analysis of leading survey data, suggesting the jobs market is battling to overcome higher taxes and weak growth prospects.
Fresh monthly findings from the Recruitment and Employment Confederation (REC) and KPMG have indicated another increase in unemployed people actively seeking positions, which is likely driven by elevated redundancy levels and staff non-replacement across various companies, as reported by .
Drawing on S&P Global's purchasing managers' index data for September, a crucial survey monitoring growth throughout the 海角视频 economy, REC and KPMG researchers discovered that the jobs market has "not yet turned a corner and remains tough".
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It marks the latest damaging dataset regarding Chancellor Rachel Reeves' stewardship of the 海角视频 economy almost a year following her inaugural Autumn Budget, in which she increased employment taxes by £20bn through raising employers' national insurance contributions (NICs).
Sector analysts noted the upturn in temporary candidates represented the second sharpest since November 2020, whilst the rate of expansion in the permanent jobseekers' pool constituted the third largest monthly increase within the same timeframe.
The fresh report also revealed that the permanent placements index stood at 44.8, which remained considerably beneath the 50-figure threshold for neutrality. There has been a more pronounced decrease in public sector job openings compared to private sector ones, affecting both permanent and temporary positions.
London has seen a particularly worrying slump, with the rate of permanent placements in the city experiencing the sharpest drop since August 2020, following the initial lockdown.
Last month, the Office for National Statistics disclosed that the number of job advertisements in the labour market in August had plummeted to 728,000, one of the lowest figures recorded since spring 2021.
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According to REC and KPMG, the downturn in available jobs represents the mildest decline witnessed in a year, although this is unlikely to provide any comfort to the government or the Bank of England as they consider the implications of a weakened job market on future inflation trends.
The most significant monthly decreases were observed in the retail, hotel and catering, and professional sectors – an alarming indication for workers across all income levels.
The survey data also revealed that the growth rate of starting salaries "rose negligibly" in September due to diminished demand for workers and reduced hiring budgets.
Temporary pay growth also slowed to an eight-month low, while starting salaries declined in certain regions, including the South of England.
Jon Holt, Group Chief Executive at KPMG, commented: "With very little positive news out there on the economy in recent months, and lots of speculation about the Budget, it is understandable that employers are cautious with their hiring".
"The jobs market has not yet turned a corner and remains tough, but we saw stabilisation in some of the numbers last month. While the public finances provide little room for manoeuvre in November, some clear signals from the Chancellor that build on business confidence will hopefully support renewed hiring as we head into 2026."
Neil Carberry from REC urged the government to find "practicality" on the Employment Rights Bill to alleviate employer concerns, while stating that tax increases on businesses at the Budget would be "unaffordable".