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UK labour market remains strong in October – KPMG/REC

The latest KPMG/REC report paints a bright picture of the UK jobs market. The report for October showed that the number of people placed into permanent jobs in the UK rose at a sharp and accelerated rate, with the rate of growth the second fastest since March. At the same time, billings for temporary staff expanded at the fastest pace since May.

The survey reported continued strong demand for permanent staff within the UK labour market although it did note that the rate of growth was restricted by candidate shortages. On the temp side, an inability to find candidates for permanent positions was cited as a reason for robust demand.

Although job vacancies expanded at the softest pace for nearly two years in October, growth of demand for staff remained historically sharp at the start of the fourth quarter. Starting salaries continued to rise sharply in October, with the rate of inflation holding close to September’s 41-month record. Hourly pay rates for temporary staff also increased markedly, despite the rate of growth edging down to the least marked since March.

Commenting on the latest survey results, James Stewart, Vice Chair at KPMG, said:

“Whilst Brexit may be dampening overall business investment, firms continue to hire new staff at near record rates. With the jobs market so heated, businesses across the country, of all types, are struggling to find work ready staff. A four-decade low in unemployment and a dwindling supply of EU workers means good candidates are at a premium. Consequently, we’re seeing wages pushed upwards and a trend of canny workers job hopping to secure a pay rise rather than remaining loyal to their existing employers.”