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Hiring rate declines in October in ‘end to positive news for jobs’
Hiring activity fell in October, ending several months of more positive jobs news as employers pulled back on recruitment. The slowdown matters because rising borrowing and energy costs are squeezing businesses, while higher interest rates and persistent inflation could put further pressure on hiring.
Permanent placements fell at the second-fastest rate this year, and temporary billings declined for the first time since March. Vacancies also fell, though at their slowest rate in more than two years; separate official figures put vacancies below 700,000 for the first time in over five years. Hiring showed some resilience in London and northern England, with demand for IT and computing, engineering and construction workers.
In short
- Hiring activity weakened in October.
- Permanent placements fell at the second-fastest rate this year.
- Official vacancy numbers dropped below 700,000.
Explained simply
Hiring activity measures how actively employers are filling jobs, including permanent roles and temporary work. Recruitment surveys track placements and vacancies, while official figures provide a separate count of job openings across the economy.
Employers decide how many people to hire based on their costs and expectations for business. Higher borrowing and energy costs can make expansion harder, while inflation and interest rates affect both businesses and household spending.
A sustained slowdown in hiring can mean fewer opportunities for people looking for work and can signal weaker confidence among employers. The picture may vary by place and industry, with demand holding up in some parts of the UK and for some types of work.