Archive · 8 Oct 2026
UK Permanent Hiring Reaches Four-Year High as Recovery Begins
In September, UK employers hired more permanent workers than they had in four years.
The measure of permanent hiring rose for a second month in a row.
Temporary work also increased, but more slowly than in recent months.
At the same time, overall demand for workers was still falling, though less sharply than before.
More people were available to take jobs, partly because there were not enough openings.
Technology and engineering jobs were among the strongest areas for hiring.
Retail and hotel and catering jobs were weaker.
Business leaders said uncertainty and borrowing costs could make it harder for the recovery to continue.
The figures suggest a possible start to recovery, not a full turnaround.
The permanent placements index rose to 50.9 in September from 50.5 in August, its strongest reading in four years.
Temporary billings also increased to 50.9, but at their slowest growth rate in five months.
Overall demand for workers continued to fall, though at its weakest rate since August 2024; available workers continued to increase.
IT and computing led permanent hiring demand, followed by engineering, while retail and hotel and catering saw the sharpest declines.
KPMG’s Jon Holt called the recovery fragile and cited energy-price uncertainty and higher borrowing costs as risks.
- Who
- UK employers and jobseekers, according to a survey of around 400 recruitment and employment consultancies.
- What
- Permanent placements rose to their strongest reading in four years, while overall demand for workers continued to decline.
- When
- September; the report was released ahead of the UK government's Budget due on October 28.
- Where
- The United Kingdom, with regional data covering four English regions.
- Why
- The figures point to increased hiring in some areas, while overall vacancies remain weak and businesses face uncertainty over energy prices and borrowing costs.
Emphasis on stability
Emphasis on growth
What businesses need from the Budget
Emphasis on stability
KPMG's Jon Holt said a Budget that restores business confidence is key to sustaining hiring momentum.
Emphasis on growth
REC interim chief executive Maxine Bligh said employers want the Chancellor to explain how to achieve growth, not rely on talk of stability alone.
- Permanent placements index
- 50.9 in September, up from 50.5 in August; readings above 50 indicate growth.
- Temporary billings index
- 50.9, indicating an increase, but the slowest growth in five months.
- Overall staff demand
- Continued to decline, at its weakest rate since August 2024.
- Staff availability index
- Fell to 57.2 from 60.6; availability continued to rise, but at the slowest pace in three years.
- Strongest hiring areas
- IT and computing, followed by engineering.
- Weakest hiring areas
- Retail and hotel and catering.
- Survey
- Compiled by S&P Global from responses from around 400 recruitment and employment consultancies.
- Upcoming Budget
- The UK government was due to deliver its Budget on October 28.