According to the latest KPMG and REC, UK Report on Jobs survey, a further drop in permanent placements across the UK contrasted with a sustained upturn in temp billings in November. Panel members frequently mentioned that staff hiring was dampened by uncertainty related to the coronavirus disease 2019 (COVID-19) pandemic as well as the renewed lockdown measures in November, with firms often opting for short-term workers for current business needs.

Concurrently, overall demand for staff fell solidly, driven by a marked fall in permanent job vacancies. Redundancies related to the pandemic meanwhile led to greater availability of both permanent and temporary candidates. Higher staff supply and weak demand meant that downward pressure on starting pay persisted, with recruiters signalling lower starting salaries and temp wages. The report is compiled by IHS Markit from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies.