Jo Thompson Recruitment contributes to the Report on Jobs, a comprehensive guide on the UK labour market drafted by KPMG and the Recruitment & Employment Confederation (REC), compiled by IHS Markit. This monthly report is built upon survey data from recruitment consultancies and employers, providing valuable insights into the latest labour market trends.
Latest UK Report on Jobs Highlights
The latest UK Report on Jobs by the REC, KPMG, and IHS Markit reveals a mixed picture for employers and jobseekers alike. The availability of both permanent and temporary staff has risen sharply, easing some of the recent pressures on hiring. At the same time, recruitment activity continues to decline—albeit at a slower, though still notable, rate. Meanwhile, starting salaries are edging upward, though at their softest pace in four and a half years.
Jon Holt, Chief Executive and Senior Partner of KPMG in the UK, commented:
“The business trading environment remains complex and it is still a mixed picture when it comes to reported business confidence. This complexity, coupled with a subdued economic outlook, means chief execs continue to pause their future spending plans, including hiring.
“Given the speculation around upcoming Budget measures, it’s unlikely we’ll see a significant shift in recruitment patterns in the near term as businesses evaluate their investment strategies in response to policy commitments and the rapid pace of change brought by AI and new technologies.”
Neil Carberry, REC Chief Executive, added:
“Employers need a shot of confidence along with their seasonal flu jabs this autumn. August saw recent declines in the market moderating, and a few positive signs – like an improving market for temps in the Midlands. Overall, permanent placements are declining at their slowest rate since May, and the reduction in temporary billings also eased. There is certainly potential out there – but with fewer vacancies and more candidates looking for work, the overall picture is still subdued. While we have seen a summer slowdown, we will hopefully see more positive signs when the September data come through next month.
“All eyes are now on the Autumn Budget, in hope now that the Chancellor won’t do any further damage to the labour market with costs on hiring. For the economy to thrive, the Budget must recognise the need for investment in people. Long-term investment in skills, workforce stability, a more practical approach to the Employment Right Bill and meaningful partnerships with employers will yield far more enduring returns than short-term fixes.”
Executive Summary
The Report on Jobs provides a detailed, data-driven overview of the UK labour market. The main findings for August are:
Staff hiring falls at softer but still marked rate
Recruitment consultancies across the UK signalled a further reduction in the number of people placed into permanent job roles in August. Although the rate of contraction was the slowest seen in three months, it was steep overall and often linked to weak confidence around the economic outlook and concerns over costs. Temp billings also fell at a slower, but still solid rate.
Sharpest rise in candidate numbers since November 2020
The availability of staff increased at a rapid and accelerated rate in August. Furthermore, the latest upturns in permanent and temporary labour supply were the most pronounced since November 2020, with the former seeing the sharper rate of growth overall. According to recruiters, redundancies, fewer job opportunities and concerns over current job security were key factors pushing up worker availability.
Overall demand for staff continues to fall
That latest survey pointed to a further marked drop in total vacancies across the UK midway through the third quarter. Notably, the pace of reduction was the steepest recorded in six months. Divergent trends were seen by job type, however, with a sharper decline in permanent vacancies contrasting with a softer fall in temporary job opportunities.
Permanent starters’ salaries increase only marginally
Recruiters operating across the UK signalled muted rates of pay growth for both permanent and temporary staff in August. Furthermore, the increase in starting salaries was the weakest recorded in four-and-a-half years and only marginal, while temp wage inflation also remained much slower than the historical trend. Softer rates of pay growth were often linked to increased candidate availability, lower demand for staff and tighter client budgets.
Courtesy of IHS Markit, KPMG, and the Recruitment & Employment Confederation
Regional Insights: South of England
Hiring activity continues to weaken across the South of England in August.
Steve Hickman, Reading Office Senior Partner at KPMG UK, remarked:
“Hiring activity across the South of England continues to face headwinds, with August marking another steep decline in both permanent placements and temp billings. The South once again recorded the sharpest falls in job vacancies across the UK.
“At the same time, the supply of candidates has risen notably, driven by redundancies and concerns over job security. With more talent entering the market and starting pay softening – particularly for permanent positions – South East employers may find a strategic opportunity to fill critical roles at more sustainable salary levels. But with hiring confidence still fragile, many businesses remain cautious about committing to fresh investment.”
Special Feature:
The recruitment opportunity for older workers
Recent data from the Centre for Ageing Better shows that more than a third (36%) of workers aged 50-70 feel at a disadvantage in recruitment because of their age. At the same time, age is the least scrutinised form of workplace discrimination in the UK – with over half of employers saying they are unlikely to introduce age-related policies.
Older workers are good for business. OECD research shows that firms with 10% more employees aged over 50 are on average a percentage point more productive – linked to higher levels of retention, management, knowledge sharing and mentoring. Polling from the Work Foundation finds that seven in ten business leaders in Britain agree their organisation benefits from the diverse perspectives brought by a multigenerational workforce, with those with a multigenerational workforce already in place most likely to agree that there are benefits.
Despite the clear business advantage, older candidates are still too often excluded. Job adverts use coded language like “dynamic” or “recent graduate.” Application forms that demand full work histories expose age unnecessarily. Employers underplay benefits such as flexibility and pensions, while stereotypes about adaptability or ambition persist.
The result is that talent pipelines are narrowed and experienced talent can be shut out at a time when sectors from health and social care to logistics and engineering are facing skills shortages.
The practical solutions
Recruiters are uniquely placed to lead the shift towards age-inclusive hiring. The REC’s recent Career Returners guidance suggested practical solutions recruiters can take to be more inclusive of older workers and those returning after a career break:
Job adverts. Include a short diversity statement in job adverts emphasising age inclusivity or welcoming applications from candidates who have taken a career break. Focus only on necessary skills and qualifications and avoid over-detailed role specifications. Avoid wording about “current” or “recent” knowledge, skills and experience. Frame and word job ads with care, ensuring that they aren’t age-biased, e.g. “technologically savvy”, “recent graduate”.
Flexibility: State any flexible working options, which might appeal to older workers. Monitor applicants’ working pattern preferences but do not share these with decision makers.
Screening adjustments: Don’t make judgements that a candidate is weak on the basis of lacking recent experience. Look for transferable skills and skills built during a career break. Don’t reject a candidate for being over-qualified before checking their expectations. Look beyond the most recent role.
Screening calls: If you identify a candidate as returning from a career break, explain that you are supportive of helping career returners. Ask openly and considerately about what they have done on their career break. State why you are asking: to give them the opportunity to share any recent skills and experience gained during their break. Put candidates at ease so they understand the motivation for the questioning. Say that if they would prefer not to discuss their career break, for whatever reason, then that is ok too.
Assessment adjustments: Ensure assessments don’t demand recent knowledge or experience. Provide tailored candidate support, including links and tips for research and preparation before the assessment. Focus where possible on technical behaviours and understanding rather than knowledge.
Post-assessment: Notify older workers as soon as possible with the outcome of their application. Tailor and soften standard rejection response so they feel positive about their performance. Offer to provide constructive feedback to build their confidence with what they did well and learning points to help them secure a role in the future.
These echo and complement the REC’s Good Recruitment for Older Workers toolkit developed with the Centre for Ageing Better and the CIPD which also advocated for inclusive adverts, monitoring age data, structured interviews and training line managers to reduce bias.
The REC’s recent Career Returners guidance suggested practical solutions recruiters can take to be more inclusive of older workers and those returning after a career break. These echo and complement the REC’s Good Recruitment for Older Workers toolkit developed with the Centre for Ageing Better and the CIPD which also advocated for inclusive adverts, monitoring age data, structured interviews and training line managers to reduce bias.
By acting as age inclusion partners to clients, agencies can access a wider talent pool to fill shortages, demonstrate value and help clients build stronger multigenerational workplaces that support retention and skills transfer.
At Jo Thompson Recruitment, we understand that building a resilient and agile workforce means tapping into the full spectrum of talent—including experienced professionals who are too often overlooked. Research from the REC, the CIPD and the Centre for Ageing Better highlights the importance of tackling age bias in hiring and unlocking the skills and knowledge of older workers. By combining pre-qualified candidates with data-driven insights, we help hiring managers—who we know are time-poor—create diverse, high-performing teams that are fit for the future.
If you’d like to refine your recruitment strategy, discover hidden talent pools, and make confident, inclusive hiring decisions, we’d be happy to help. Get in touch with Jo Thompson Recruitment at info@jtrltd.com or call us on 01635 734975 to start the conversation.