October’s UK Market Briefing shows recruitment activity improving for a second month, while official indicators continue to send mixed signals. The Permanent Placements Index reached 50.9 in September, its strongest reading in four years, and the decline in overall staff demand was the weakest in just over two years.
Unemployment eased to 4.7% in June to August and the employment rate increased to 75.3%. However, vacancies fell to 691,000 in July to September, dropping below 700,000 for the first time since 2021. Smaller firms continued to cite labour costs as a constraint.
The recovery varied by sector and location. Permanent placements rose in three of the four English regions, led by the North, while the South remained in decline. IT and computing and engineering led permanent demand. Temporary billings grew for a sixth month, but the pace slowed.
Regular pay growth was 3.7%, while starting salary growth eased and candidate availability continued to rise. Inflation increased to 3.5% in September, and Bank Rate remained at 3.75% ahead of the October Budget.
For employers and staffing leaders, the report supports phased hiring plans, role-specific salary benchmarks and close attention to local candidate supply. The full member report explores the gaps between employment measures, sector opportunities and the implications for workforce planning.