Permanent salary growth falls again as labour market continues to soften
Permanent staff appointments post further decline
Lowest increase in permanent salaries since February 2021
Further rises in candidate availability
Commenting on the latest survey results, Jon Holt, Group Chief Executive and UK Senior Partner KPMG, said:
“While some sectors are still finding it difficult to recruit people with the right skills, the overall pool of available candidates is growing as companies are still faced with tough decisions on their headcount. This has led to a softening of salary inflation, which dropped to its lowest point since February 2021. The Bank of England will likely be encouraged by this easing in pay pressures, which could strengthen the case for a further cut in interest rates in the upcoming November meeting.
“The slowing of hiring activity seen in September is to be expected as businesses apply the brakes on recruitment ahead of the Budget and wait for clarity on future taxation, business, and economic policy. The Government needs to continue to give chief execs confidence in the UK’s macroeconomic conditions and the country’s route to stronger growth.”
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