UK hiring flickers back to life as permanent placements hit four-year high
The latest KPMG and REC UK Report on Jobs shows permanent placements rose for a second consecutive month in September, marking the fastest pace in four years. For the first time in over two years, demand for permanent staff in the private sector is also rising, though staff shortages and cost pressures remain.
The Recovery Sign
The latest KPMG and REC UK Report on Jobs, published on 8 October 2026, found that permanent placements rose for a second straight month in September, at the fastest pace in four years, and for the first time in more than two years, recruiters also reported rising demand for permanent staff in the private sector.
The specific metrics paint a cautious picture of recovery:
- Permanent placements index stood at 50.9 in September 2026, up from 50.5 in August, the highest reading since September 2022.
- Total vacancies index rose to 48.5 from 47.0, with demand for staff still falling but at the weakest pace since August 2024.
- Staff availability index fell to 57.2 from 60.6, with more candidates entering the market but supply growing at the slowest pace in three years.
The Broader Context
This recovery is fragile. While businesses are increasing their hiring across both permanent and temporary roles, and vacancies grew in the private sector for the first time in over two years, recruiters acknowledge this remains a fragile recovery. ONS figures indicate the number of vacancies in the UK continued to fall in the three months to August, declining by 8,000 compared with the three months to May, bringing the total number of vacancies to 702,000, the lowest level since the three months to April 2021.
If you are a jobseeker or planning to relocate for work in the UK, this is modest good news: employers are hiring again, but competition remains intense. Permanent roles are becoming more available in the private sector, though the overall vacancy supply is still below pre-pandemic levels. Consider applying now if you have been waiting for hiring to pick up, but prepare strong applications given the candidate supply is also growing.
Sources
Independent app, not a government. General information, not advice. The official source:
