Story perspectives

UK Job Market Sees Slow Recovery Amid Hiring Decline

10/15/2025

Summary

Story summary

The KPMG and REC UK Report on Jobs shows permanent staff recruitment continues to decline.
The slowest decline in 21 months occurred in September, with analysts noting the Autumn Budget could bolster hiring.
Temporary job billings rose for the first time in nearly a year.
Candidate availability increased sharply, particularly in the South, as firms adapt to economic pressures.
Pay trends remained subdued, with starting salaries and temporary wages falling.

History

Historical Context

In 2021, the UK labor market underwent significant changes due to the COVID-19 pandemic, with job vacancies increasing by 1.5 million. This shift reflects ongoing economic pressures post-Brexit, which has led to reduced hiring and wage growth challenges. By 2023, the financial services sector employed 2.5 million people, contributing 12% to the UK’s economic output, highlighting the evolving employment landscape.

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Story summary

The KPMG and REC UK Report on Jobs shows permanent staff recruitment continues to decline.
The slowest decline in 21 months occurred in September, with analysts noting the Autumn Budget could bolster hiring.
Temporary job billings rose for the first time in nearly a year.
Candidate availability increased sharply, particularly in the South, as firms adapt to economic pressures.
Pay trends remained subdued, with starting salaries and temporary wages falling.

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