UK employment figures show tentative rebound amid lingering economic headwinds

According to a joint KPMG and recruiter REC study, permanent hiring in the United Kingdom climbed for a second consecutive month, hitting a four-year peak of 50.9 on the index. Temporary staffing billings matched that level but expanded at the slowest rate in five months. While overall demand for workers slipped in September, the contraction was the weakest recorded since August 2024, and private-sector vacancies rose for the first time in more than two years.

Jon Holt, group chief executive and UK senior partner at KPMG, described the trend as a "flicker back to life" but stressed its fragility amid volatile energy prices and higher borrowing costs. The report also noted a widening pool of job seekers, with the staff availability index falling to 57.2, especially in the North of England, while London saw the smallest rise in permanent applicants. Experts highlighted the upcoming Budget as a pivotal moment for businesses seeking tax certainty and growth-friendly policies.