October saw employers pull back on hiring in the month leading up to the Budget, ending a run of more positive news over recent months,
according to KPMG UK chief executive Jon Holt.
UK employers reduced hiring in October, reversing earlier momentum as job market pressures mounted.
Industry data revealed that permanent placements dropped during the month at the second-fastest pace recorded throughout the year. Temporary billings experienced their first decline since March, driven by higher interest rates and elevated energy expenses.
Jon Holt noted that businesses would now need to evaluate whether recent fiscal announcements provide sufficient stability to handle ongoing external pressures. He warned that with further interest rate increases and inflation expected to rise, earlier signs of recovery in the employment sector risk stalling.
Interim chief executive Maxine Bligh of the REC highlighted that hiring displayed encouraging stability in London and the northern regions of England. Researchers from KPMG and REC observed that demand for workers remained elevated specifically within sectors such as IT, computing, engineering, and construction.
Official figures released by the Office for National Statistics showed that total job vacancies fell below the 700,000 threshold for the first time in more than five years, even as overall vacancy reductions moderated to their softest decline in over two years. The government’s budget was a missed opportunity to support employment and economic expansion,
Maxine Bligh stated.