UK job vacancies fall for 34th month as job seekers increase

The United Kingdom's employment market is experiencing a period of contraction, with overall demand for workers falling for the 34th consecutive month. According to the latest KPMG and Recruitment and Employment Confederation (REC) Report on Jobs, the number of people seeking employment increased at its sharpest rate in three months during August, driven by corporate redundancies and heightened job insecurity.

Despite the broader decline in vacancies, there are signs of stabilization in specific sectors. The permanent placements index rose to 50.5, marking the first expansion above the neutral threshold since September 2022. This suggests a potential end to a 45-month downturn in permanent hiring, though employers continue to favor flexible, short-term arrangements, as evidenced by temporary billings registering at 52.4.

Official data from the Office for National Statistics (ONS) corroborates this cooling trend, estimating approximately 707,000 vacancies between May and July 2026. The current labor balance shows roughly 2.5 unemployed individuals for every available vacancy, increasing competition for candidates entering the market.