Source: Sharecast
According to the latest jobs report from KPMG and the Recruitment and Employment Confederation, August saw the steepest rise in candidate numbers since November 2020.
Respondents cited redundancies, fewer job opportunities and concerns about current job security as the key factors pushing up worker availability.
At the same time, total vacancies fell at the steepest pace for six months, with permanent positions particularly affected.
Wages were also hit, with the "marginal" increase in starting salaries the weakest for nearly five years, the report noted. Temporary wage inflation was also slower than the historical trend.
Respondents blamed increased candidate availability, lower demand for staff and tighter budgets for the sluggish growth in salaries.
Jon Holt, UK senior partner at KPMG, said: "Given the speculation around upcoming Budget measures, it’s unlikely we’ll see a significant shift in recruitment patterns in the near term, as businesses evaluate their investment strategies in response to policy commitments and the rapid pace of change brought by AI and new technologies."
Neil Carberry, chief executive of REC, the recruitment industry’s trade body, said: "There is certainly potential out there. But with fewer vacancies an more candidates looking for work, the overall pictures is still subdued.
"All eyes are now on the autumn Budget."
Chancellor Rachel Reeves confirmed last week that the Budget would be held at the end of November, a month later than usual. The government is under pressure to cut spending and reduce the deficit while boosting sluggish economic growth.
The monthly jobs report, which is compiled by S&P Global, was sent to a panel of around 400 UK recruitment and employment consultancies. Data were collected between 12 and 22 August.
