Labour market trends for October 2024:
Staff appointments continue to fall:
The latest KPMG/REC Report on Jobs survey indicated a further fall in the number of permanent staff placements. The downturn in appointments now extends to two years, although the latest contraction was slightly softer than August’s five month record. Uncertainty in the outlook, including around government policy ahead of late October’s Budget, meant companies were cautious in their hiring activity. Temp billings also declined in September, and at the steepest rate since April
Permanent pay inflation softens during September:
Although there remained reports of shortages in suitable candidates, which helped to boost pay rates, permanent staff salary growth eased again in September. It was the third month in a row that salary inflation has fallen, and September’s reading was the lowest since February 2021. A greater number of candidates and reduced demand helped to limit pay growth, according to panellists. Temp rates meanwhile were fractionally lower, putting an end to a three-and-a-half-year run of inflation.
Vacancy numbers continue to decline:
Latest survey data showed an eleventh successive monthly fall in staff vacancies. Moreover, the pace of contraction accelerated to the steepest since March. Both permanent and temp vacancies declined at similarly modest rates during September
Staff availability rises markedly:
Amid reports of increased redundancies and lower demand for workers, the overall availability of staff to fill positions increased again in September. Overall growth was again steep, despite easing to its lowest level since February. Similar trends were seen for both permanent and temporary workers.