UK jobs market remains under pressure - KMPG/REC
By Abigail Townsend
Date: Monday 08 Dec 2025
(Sharecast News) - The UK jobs market remained under pressure in November, a survey showed on Monday, as pre-Budget uncertainty weighed on employers.
According to the latest jobs report from KPMG and the Recruitment and Employment Confederation, a trade body, there was a further downturn in recruitment activity during the month.
"A high degree of market uncertainty, linked to the November Budget, plus high employment costs, limited hiring," the report noted. However, the downturn in permanent placements was the weakest since July 2024.
Salaries also increased, as firms competed to attract skilled workers. Permanent salary inflation is now at the highest level for five months, though below trend. Temporary pay was unchanged overall.
For temporary positions, billings were down "modestly".
Staff availability, meanwhile, increased considerably, with the supply of candidates for new roles increasing at the second-fastest rate since November 2020.
Lisa Fernihough, head of advisory at KPMG UK, said: "A complex business environment and uncertainty around the Budget kept hiring on ice last month, as business leaders weighed potential impacts.
"There will be relief at the absence of major tax hikes. However, that alone is unlikely to be enough to see a marked change in how firms are planning."
REC chief executive Neil Carberry said: "We can see signs of the market stabilising, including an improvement in pay rates for new jobs.
"But to really get businesses firing, they need confidence."
Labour costs spiked in April, following changes to the minimum wage and employer National Insurance contributions.
In the long run-up to this year's Budget - which fell a month later than usual, on 26 November - a raft of leaks, speculation and apparent U-turns created concerns that businesses would face a further hike in costs, as chancellor Rachel Reeves battled sluggish growth, soaring government spending and high levels of debt.
The final Budget included £26bn of tax rises, but companies were spared the brunt of it.
The survey, which was compiled by S&P Global, was based on a responses to questionnaires sent to a panel of around 400 recruitment and employment consultancies. Data were collected between 12 and 24 November.
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