September’s UK Market Briefing points to an early improvement in recruitment activity, alongside a softer picture in the official labour market data. Permanent placements rose for the first time since September 2022, with the index reaching 50.5, while temporary billings increased for a fifth consecutive month.
The improvement was uneven. Overall demand for staff fell for a 34th month, although the contraction was among the weakest in nearly two years. Permanent placements increased in London and the Midlands but declined in the North and South. Engineering and accounting and financial roles saw stronger permanent vacancy demand.
Official figures showed unemployment at 4.9% in May to July and 702,000 vacancies in June to August. Provisional payroll estimates fell again in August. Candidate availability also increased at its fastest pace in three months, with redundancies continuing to add to supply.
Regular pay growth was 3.5%, while the Bank of England held Bank Rate at 3.75%. For employers and staffing businesses, the practical priority is to prepare for improving activity while keeping hiring plans, salary benchmarks and regional expectations grounded in current evidence. One positive placements reading does not yet establish a sustained recovery.
The full member report examines the differences between recruitment surveys and official measures, sector and regional trends, pay pressures and the implications for workforce planning.