Recruitment across the South of England continued to weaken in November, according to the latest Report on Jobs from KPMG and the Recruitment and Employment Confederation (REC). Low business confidence and uncertainty ahead of the Autumn Budget were cited as key factors.
Vacancies for both permanent and temporary positions fell, though the rate of decline was slower than in October. Meanwhile, the supply of candidates increased sharply, reflecting redundancies and fewer new job opportunities.
Despite the slowdown, pay levels showed early signs of improvement. Permanent salaries rose slightly for the first time in four months, while temporary wages increased for the first time since June, driven largely by demand for workers with specialised skills.
Steve Hickman, senior partner at KPMG’s Reading office, said: “November’s figures demonstrate qualified cause for optimism with permanent placements falling at the second-slowest rate in over two years. These results need to be viewed in context, however.”
Hickman noted that the survey was conducted prior to the Chancellor’s Autumn Budget on 26 November, a period marked by significant uncertainty. “This would go some way to explaining the notable weakening in temporary hiring as firms put short-term spending on hold. What stands out is the strength of candidate availability. The South recorded the sharpest rise in permanent staff supply across England, driven by redundancies and limited job opportunities. Yet starting salaries are beginning to edge up again, particularly for roles requiring specific skills. For South East businesses with clarity on their plans and the confidence to act, this remains a window to access quality talent before competition intensifies.”
Neil Carberry, chief executive at REC, added: “Pre-Budget nerves knocked temporary recruitment back just a little in November in the UK after a growing October, but the overall picture was still relatively benign by comparison to the last year. The reduction in permanent appointments in the South was the second slowest for over two years, and the decline in temp billings has slowed overall in recent months.”
Carberry emphasised that the focus now is on decisions employers make in January. “We can see signs of the market stabilising in the South and the UK, including an improvement in pay rates for new jobs. But to really get businesses firing, they need confidence. While the Budget was not the horror show of last year, there was little in it to fire the heart of firms. More recently, moves to change the Employment Rights Bill will have landed well, but there is much more to do to get the economy firing. If government’s priority is growth, their report card at the end of 2025 reads ‘Must try harder’.”
