UK jobs seekers rise despite recovery in permanent hiring

In August, the number of job seekers in the UK surged as redundancies surged and employment insecurity grew, despite a tentative recovery in permanent hiring. Total staff availability surged to its fastest rate in three months as a wave of Brits searching for jobs entered the market. This surge was fueled by ongoing corporate layoffs and mounting worries about job security, according to the most recent employment report from KPMG and recruiter REC.

Permanent job placements managed a slight increase, with the index reaching 50.5, marking the first growth in permanent hiring since September 2022. Meanwhile, temporary billings climbed to 52.4, as cautious employers favored flexible, short-term contracts over long-term hires.

Jon Holt, the group chief executive and UK senior partner at KPMG, noted this as a positive sign after a prolonged hiring slump. However, he emphasized that the overall jobs market is still contracting. Holt added that the upcoming first Budget for Andy Burnham and Chancellor John Healey presents an opportunity for the government to transform these early signs of recovery into sustained positive momentum.

Maxine Bligh, interim chief executive of REC, warned against taking the job market for granted. She urged the government to follow through on its commitment to reducing business burdens. Bligh highlighted that improving momentum in the jobs market means greater pragmatic approaches on employment rights, including addressing the government's gamble with its guaranteed hours policy.

She also stressed the importance of an Autumn Budget that demonstrates the government's commitment to backing businesses and providing employers with the confidence they need to hire, invest, and grow.