Growth in permanent UK jobs speeds up in September amid north recovery

(Alliance News) - The rise in permanent job postings in the UK accelerated a notch in September amid a solid recovery in England's north, data published by KPMG and the Recruitment & Employment Confederation showed Thursday.

According to the jobs report, published by S&P Global, the permanent placements index improved to 50.9 points in September from 50.5 points in August.

Rising further above the neutral 50-point mark separating growth from contraction, it indicates that the rise in permanent job postings accelerated in September.

Notably, the index jumped to 53.6 in the north of England in September from 48.0 points in August, indicating a healthy return to growth in September.

In the Midlands, it improved to 52.1 from 51.6, while it slowed in London to 50.4 from 53.6. In England's south, however, a fall in permanent job postings sped up as the index there worsened to 47.9 in September from 48.6 in August.

The report said: "Where higher placements were reported, recruiters commented that employers took on extra staff due to rising activity levels and company expansion plans amid improved confidence around the business outlook."

Meanwhile, the temporary billings index fell to 50.9 points in the UK in September from 52.4 in August, indicating slowed growth in September. It worsened everywhere in England except in the Midlands, where it improved to 53.8 points from 48.4 points.

Vacancies fell at a slower rate in the UK in September, as the index ticked up to 48.5 points in September from 47.0 points in August.

The permanent salaries index meanwhile edged down to 53.4 points in September from 54.1 points in August, indicating decelerated growth.

The report said: "Permanent starting salaries increased again during September, extending the current period of pay growth to just over five-and-a- half years. The rate of inflation eased for the first time in four months, however and, whilst solid, moved further below its long-run trend.

"While competition for high-quality candidates reportedly placed upward pressure on salaries, some recruiters noted that efforts to control costs and improved candidate numbers had limited pay growth. Salaries rose sharply in the north of England, and modestly across the remaining monitored English areas."

The temporary wages index cooled to 52.6 points in September from 53.5 points in August.

Maxine Bligh, chief executive at the REC, said: "The permanent jobs market is revving its engine, with a second successive month of growth. The last time we saw a sustained run of growth in permanent placements was between March 2021 and September 2022.

"If this trend continues, we could see genuine momentum building across the labour market, with both permanent and temporary hiring moving in the same direction, which is encouraging for jobseekers and the economy. The signal from the private sector is that it is ready to invest, with permanent vacancies rising for the first time in more than two years across the sector."

Looking ahead, she said: "A budget that gets business confidence moving again is key to keeping that momentum going. The geopolitical backdrop remains challenging for government and business alike.

"But the chancellor cannot seize this moment with talk of stability alone. Employers want to hear not just how we deliver stability, but how we go for growth."

UK Chancellor John Healey's budget will be announced on October 28.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.