Jo Thompson Recruitment contributes to the Report on Jobs, a comprehensive guide on the UK labour market that is drafted by KPMG and the Recruitment & Employment Confederation (REC), compiled by IHS Markit. The monthly report is built upon survey data from recruitment consultancies and employers, who share insights on the latest and most pressing labour market trends for the UK.
Commenting on the latest survey results, Lisa Fernihough, Head of Advisory at KPMG UK said:
“Despite a slight uptick in some indicators again this month, the latest figures confirm the jobs market remains stuck in contraction. A complex business environment and uncertainty around the Budget kept hiring on ice last month, as business leaders weighed potential impacts.
“There will be relief at the absence of major tax hikes, however that alone is unlikely to be enough to see a marked change in how firms are planning. For now, with many businesses still facing challenges it is likely many will maintain a cautious stance, balancing recent tech investments against the need to expand their workforce.”
Neil Carberry, REC Chief Executive, said:
“Pre-Budget nerves knocked temporary recruitment back just a little in November after a growing October, but the overall picture was still relatively benign by comparison to the last year. The market grew in London and the Midlands – two key bellwethers. Permanent hiring remained weaker, but numbers continue to improve a little month-on-month. With such a late Budget and the Christmas period just around the corner, the key now will be the decisions that employers make for their businesses this coming January.
“We can see signs of the market stabilising, including an improvement in pay rates for new jobs. But to really get businesses firing, they need confidence. While the Budget was not the horror show of last year, there was little in it to fire the heart of firms. More recently, moves to change the Employment Rights Bill will have landed well, but there is much more to do to get the economy firing. If government’s priority is growth, their report card at the end of 2025 reads “Must try harder.”
Courtesy of IHS Markit, KPMG, and the Recruitment & Employment Confederation
Executive Summary
The Report on Jobs is unique in providing the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers to provide the first indication each month of labour market trends.
The main findings for November are:
Permanent placements down markedly in November, albeit to lesser degree
Permanent placements continued to decline during November as subdued market confidence – linked in part to uncertainty in the lead up to the Budget that took place at the end of the month – and the impacts of higher employment costs continued to weigh on recruitment. Although still marked, the degree to which placements fell eased again, dropping to its weakest since July 2024. Temp billings were also down only modestly, albeit signifying a return to contraction following marginal growth in October.
Vacancies continue to decline during November
Demand for staff declined again in November, in line with a trend that now stretches back over two years. Once again, the net reduction was marked, despite easing to its weakest since June. Vacancies for permanent positions continued to decline at a steeper pace than for temp workers.
Staff availability increases considerably
Latest data showed that the supply of candidates for new roles increased at the second-fastest rate since November 2020, with only August 2025 seeing a stronger rise during the past five years. Recruitment companies reported that redundancies and fewer vacancies had led to the upturn in labour supply. Both permanent and temporary worker availability increased at faster and historically strong rates.
Permanent salary inflation highest in five months
Permanent salaries continued to increase in November as firms remained willing to offer increased pay to skilled candidates. The rate of inflation also accelerated, rising to its highest level for five months, though remaining notably below its trend level as competition and increased labour supply limited the scope for increased pay. These factors tended to weigh even heavier on temp pay, which was unchanged overall in November.
Courtesy of IHS Markit, KPMG, and the Recruitment & Employment Confederation
Pay Pressures
The recruitment industry survey tracks both the average salaries awarded to people placed in permanent jobs each month, as well as average hourly rates of pay for temp/contract staff.
Fastest rise in perm salaries since June
Permanent salaries continued to rise during November, in line with the trend since early 2021. Panellists reported that salaries had generally been increased to attract talented applicants, especially in those areas where skills are in short supply.
Although rising to its highest level since June, the net increase in salaries nonetheless remained historically modest amid reports that expanded labour supply had led to fierce competition amongst candidates.
Temp pay rates unchanged in November
There was no change in temp pay rates during November. Whilst some panellists reported that demand for skilled workers had helped to support pay levels, others noted that market conditions were subdued overall and limiting the scope for pay rises.
There was some divergence in temp pay trends across England in November. Rates declined in both the Midlands and the North, but rose marginally in London and the South.
Insights for the South of England
In the latest UK Report on Jobs, the REC, KPMG, and IHS Markit have reported that starting salaries and temporary pay rates saw marginal increases in November, reflecting a modest improvement in hiring conditions. Although vacancies continued to decline, the reductions were softer, and the fall in permanent placements was the second-slowest in more than two years.
Commenting on the latest survey results, David Williams, Bristol Office Senior Partner for KPMG said:
“November’s figures demonstrate qualified cause for optimism with permanent placements falling at the second-slowest rate in over two years. These results need to be viewed in context, however. The survey was conducted before the Chancellor’s Autumn Budget, during a period of significant uncertainty. This would go some way to explaining the notable weakening in temporary hiring as firms put short-term spending on hold.
“What stands out is the strength of candidate availability – the South recorded the sharpest rise in permanent staff supply across England, driven by redundancies and limited job opportunities. Yet starting salaries are beginning to edge up again, particularly for roles requiring specific skills. For South West businesses with clarity on their plans and the confidence to act, this remains a window to access quality talent before competition intensifies.”
Courtesy of IHS Markit, KPMG, and the Recruitment & Employment Confederation
Staff Availability
Permanent staff availability expands sharply
The latest results showed another substantial upturn in the supply of candidates seeking permanent jobs in the South of England. The rate of expansion was the second-strongest in five years, behind only August. Fierce competition for positions, company layoffs and the non-renewal of temporary contractors were some of the reasons panellists gave for the latest upturn in staff supply.
The local rise was the strongest of all four monitored English regions.
Temp staff supply increases to greater extent
There was a pickup in growth of staff availability for temporary job roles in Southern England during November. The overall rate of expansion was among the strongest in five years, with recruitment consultants citing redundancies and a widening mismatch between vacancies and applicants.
Out of the four monitored English regions, only London saw a steeper increase than the South of England.
Summary
The latest UK Report on Jobs from KPMG, the REC, and IHS Markit shows that the labour market remained subdued in November, with demand for staff and overall placements continuing to decline. Permanent hiring weakened again, though the pace of decline was the slowest since July, while temporary billings dipped back into contraction after a brief rise in October. Businesses remained cautious amid budget-related uncertainty and higher staffing costs, delaying recruitment decisions.
Despite weaker demand, candidate availability rose sharply, reaching one of the strongest levels in five years, driven by redundancies and fewer job opportunities. This increased supply of labour contributed to heightened competition among applicants. Starting salaries continued to rise, with permanent salary inflation reaching a five-month high as firms raised pay to secure skilled talent; however, temporary pay rates were broadly unchanged due to overall subdued market conditions.
Regional data for the South of England indicates modest signs of improvement. Although vacancies still fell, the decline was softer, and permanent placements dropped at the second-slowest rate in over two years. The South also recorded the steepest increase in permanent staff availability across England, offering employers a strong pool of candidates—particularly for roles requiring specialist skills.
Overall, the labour market appears to be stabilising slightly, but confidence remains fragile. Growth will depend on employers’ decisions in early 2026, as firms balance economic uncertainty with the need to attract and retain skilled workers.
To discuss how Jo Thompson Recruitment can assist you with your resourcing needs, please email us at info@jtrltd.com or give us a call at 01635 734975 for further details.