According to the latest KPMG and REC, UK Report on Jobs survey, a further recovery in hiring activity was seen during September, with both permanent placements and temp billings rising at steeper rates.

Panel members indicated that the easing of lockdown measures to contain the coronavirus disease 2019 (COVID-19) outbreak had led clients to take on more staff. At the same time, overall vacancies rose for the first time since February, albeit only slightly. Nonetheless, redundancies stemming from the pandemic led to a further substantial increase in staff supply, which dampened pay trends for both permanent and temporary workers.

UK recruitment consultancies signalled a further increase in overall recruitment activity during September. Notably, permanent placement growth was the strongest for nearly two years, while temp billings expanded at the quickest rate since the end of 2018. The upturns were widely linked to the reopening of the UK economy and the recommencement of projects following the easing of coronavirus disease 2019 (COVID-19) lockdown measures. 

Starting salaries awarded to permanent workers continued to fall solidly in September, with the rate of decline accelerating slightly since August. Meanwhile, temp wages fell only modestly. In both cases, rising candidate numbers, subdued demand for workers and greater pressure on clients' budgets were linked to reduced pay.