Permanent hiring fell in October for the first time in four months, according to the latest KPMG and REC UK Report on Jobs. Employers held back in the month before the Budget. At the same time, starting pay rose a little faster and candidates became easier to find.
The survey is compiled by S&P Global from a panel of around 400 UK recruitment consultancies. It was published on 9 November 2026.
01What the October Report on Jobs found
- Permanent placements fell. Recruiters said employers delayed or scaled back hiring because of economic uncertainty and rising costs.
- Temporary billings fell too. This was the first fall since March.
- Candidate numbers rose sharply. Recruiters linked this to redundancies and fewer job openings.
- Starting pay rose faster. Growth picked up slightly for both permanent and temporary staff, though it stayed below its long-run average.
- Demand for staff barely fell. Overall vacancies declined at the softest pace since August 2024.
02Where hiring held up
London and the North of England both recorded small rises in permanent placements. The South of England saw the sharpest fall, and the Midlands also fell.
By sector, demand for permanent staff rose in six of the ten areas tracked. IT and engineering led the way. Retail and hotel and catering saw the steepest falls.
According to Jon Holt of KPMG, October "saw employers pull back on hiring in the month leading up to the Budget".
He warned that rising interest rates and inflation could stall the recent recovery in the jobs market.
03What it means if you are planning a hire
For a small employer, the picture cuts both ways.
More people are looking for work, so the right candidate may be easier to find. But the people you most want can cost more, because recruiters say skilled candidates are still in short supply.
So cost the hire before you advertise. Add salary, employer National Insurance, pension contributions and the time it takes a new starter to become productive. Our guide on how much it costs to employ someone takes you through each line.
Then check how the business will pay for the months before the hire earns its keep. If cash flow is tight, growth finance can spread that cost. A broker can look at the plan across a wider range of lenders.
