British employers increased permanent hiring for a second month in September, with the placements index reaching 50.9, its highest level in four years, City A.M. reported, citing a KPMG and REC survey. Overall demand for workers continued to fall.
Both the permanent placements and temporary billings indices rose to 50.9. A reading above 50 signals growth. Temporary hiring expanded at its slowest pace in five months, while the contraction in overall worker demand was the weakest since August 2024.
The pool of available workers grew as the staff availability index fell to 57.2 from 60.6. The North of England recorded the sharpest rise in candidates for both permanent and temporary roles. London had the softest increase in applicants for permanent jobs.
KPMG UK chief executive Jon Holt called the recovery fragile, citing uncertainty over energy prices and high borrowing costs. The REC said employers wanted clearer tax policy and measures to turn cautious improvements in confidence into investment and jobs.
The KPMG and REC report is based on a survey of recruitment firms rather than a full count of all vacancies. It indicates that permanent hiring has begun to recover, although overall demand for workers remains weak.