UK hiring shows fresh signs of recovery in September, KPMG/REC survey finds
Permanent staff placements grew at the fastest pace in four years in September, the KPMG/REC Report on Jobs says, adding to signs Britain's labour-market slowdown is easing.
Permanent hiring in Britain accelerated in September at its fastest pace in four years, according to the latest KPMG/REC Report on Jobs, adding to signs that the country’s protracted labour-market slowdown is starting to ease.
The survey’s permanent placements index rose to 50.9 from 50.5 in August — the highest reading since September 2022 — with readings above 50 denoting growth. It marks the second consecutive month of growth in permanent placements after nearly four years of decline.
“For the second month in a row we are seeing the jobs market starting to flicker back to life, with businesses increasing their hiring across both permanent and temporary roles,” said Jon Holt, KPMG group chief executive.
Permanent starting salaries continued to rise, but at a slower pace than in August — a detail that may offer tentative reassurance to Bank of England officials assessing domestic inflation pressure. Overall demand for staff still contracted, though at the weakest pace since August 2024.
Recruiters reported the strongest demand for IT and computing and engineering roles, while retail and hospitality recorded the sharpest falls in demand. The Report on Jobs, compiled from responses by recruitment consultancies, is viewed as a leading indicator of Britain’s labour market.
Sources
- Reuters, “UK labour market shows more signs recovery in September, KPMG/REC survey shows”, published 7/8 October 2026: https://www.reuters.com/world/uk/uk-labour-market-shows-more-signs-recovery-september-kpmgrec-survey-shows-2026-10-07/
- Finimize, “Britain’s Hiring Picture Is Finally Turning A Corner”, October 2026: https://finimize.com/content/uk-hiring-is-picking-up-again-kpmg-rec-survey-shows
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