British workers looking for better-paid employment have received an encouraging signal from the latest recruitment figures, with employers increasing starting salaries at a faster pace despite renewed uncertainty across the UK jobs market.
The latest KPMG and REC UK Report on Jobs, published today on the 9th November 2026, reveals that starting pay for permanent positions increased more quickly during October as businesses continued competing to attract experienced and skilled employees.
However, the findings also expose a more complicated picture.
Permanent recruitment declined for the first time in four months, while temporary hiring weakened after six consecutive months of growth.
For millions of UK workers considering a career move, the message is mixed but important: opportunities remain available, and some employers are prepared to pay more to secure the right candidates.
UK employers increase starting salaries despite economic uncertainty
According to the latest recruitment survey, starting salary inflation strengthened during October, reflecting continued demand for experienced workers. Recruitment businesses reported that employers were offering improved salaries to attract candidates with specialist skills.
Temporary workers also experienced stronger pay growth, although the overall pace of increases remained below historical averages.
This distinction matters.
The figures do not suggest that every worker is receiving a substantial pay rise. Instead, they indicate that starting salaries offered for certain newly recruited positions are increasing faster than they were previously.
For employees considering changing jobs, the findings suggest that relevant experience and specialist qualifications may continue to provide opportunities to negotiate improved earnings.
The Office for National Statistics earnings and employment data provides further context on how pay, vacancies and employment conditions are changing across the wider economy.
Recruitment slows as businesses become more cautious
While the salary findings provide encouragement, recruitment activity weakened during October. The survey’s Permanent Placements Index fell to 46.6, compared with 50.9 in September. Temporary billings also declined, with the index dropping to 48.9, down from 50.9.
An index reading below 50 indicates a decline in activity compared with the previous month.
The results suggest that businesses are delaying recruitment decisions, reducing the number of appointments or waiting for greater economic certainty before expanding their workforces.
Employers cited rising operating costs and concerns about the wider economic outlook as reasons for their cautious approach.
Nevertheless, there was one particularly encouraging development. The rate at which overall job vacancies declined was the slowest recorded since August 2024.
This suggests that although recruitment remains under pressure, demand for employees may be approaching a more stable position.
IT and engineering workers see encouraging recruitment opportunities
The latest figures highlight differences between industries.
Demand for permanent employees increased in six of the ten monitored job categories, with IT and computing, alongside engineering, recording particularly strong demand.
Construction and accounting and finance also featured among sectors showing improved demand for permanent staff. These findings provide some encouragement for workers with technical, professional and specialist experience.
Employers operating in technology, engineering and related industries continue to require employees capable of delivering complex projects and supporting business operations.
However, the outlook is less positive in some consumer-facing sectors.
Retail and hotel and catering recruitment recorded particularly weak demand for permanent employees.
This highlights the uneven nature of Britain’s employment market.
Workers in growing sectors may find opportunities to improve their earnings, while those in industries facing weaker demand could experience greater competition for available positions.
London and northern England show greater resilience
The survey also revealed important regional differences.
London recorded a modest increase in permanent placements during October, continuing its recent improvement in recruitment activity.
The North of England also reported a fractional rise.
By contrast, the South of England experienced the sharpest decline in permanent placements, while the Midlands recorded a solid reduction. The regional findings demonstrate why national employment figures do not always reflect the experience of individual workers.
A person seeking employment in London may encounter different opportunities from someone looking for a similar position elsewhere in the country. The findings also reinforce the importance of considering local recruitment conditions, industry demand and salary expectations when planning a career move.
Why are employers offering higher starting salaries?
One explanation is that businesses continue to face difficulties recruiting candidates with particular skills. Even when the wider employment market weakens, shortages of suitable applicants can encourage employers to increase salary offers.
For example, companies requiring experienced engineers, software specialists or technically qualified employees may need to offer competitive remuneration to attract suitable candidates.
However, rising starting salaries do not automatically translate into improved living standards.
Workers must also consider inflation, commuting expenses, pension arrangements and other employment benefits when assessing the value of a new position. A higher salary may appear attractive, but the overall employment package should be evaluated carefully.
Employees considering a job change can explore further information through The Workers Union’s workplace guidance, including advice relevant to contracts, employment rights and working conditions.
What does the latest jobs report mean for UK workers?
For workers currently employed, the findings provide a reason to review their market value.
Employees with in-demand skills may discover that equivalent positions elsewhere offer improved salaries or additional benefits. However, changing employment during a period of weaker recruitment requires careful consideration. Workers should avoid resigning before receiving a confirmed offer and understanding the proposed contractual terms.
For those seeking employment, the latest figures suggest that competition remains significant, particularly where redundancies have increased the number of available candidates.
Practical steps include reviewing current salary benchmarks, updating professional qualifications, improving relevant skills and targeting sectors where demand remains stronger.
The Government’s Find a Job service provides access to employment opportunities across the UK. Meanwhile, the National Careers Service offers information about careers, training and developing skills for future employment.
Redundancies continue to affect recruitment confidence
The report also identified a sharper increase in the availability of candidates seeking employment. Recruitment businesses linked this development partly to redundancies and a reduced number of vacancies. When more people are competing for fewer positions, jobseekers may experience longer recruitment processes and increased competition.
However, the growing availability of candidates does not necessarily mean that employers can easily fill every vacancy. Some businesses continue to report shortages of applicants with the specific qualifications and experience they require. This mismatch helps explain why starting salaries can increase even when overall recruitment activity declines.
For workers facing redundancy, understanding available employment opportunities and acting promptly can be particularly important.
The Government’s redundancy rights guidance explains important protections concerning notice periods, consultation and potential redundancy payments.
Could the UK employment market be approaching recovery?
The latest figures do not establish that Britain’s jobs market has entered a sustained recovery.
Permanent appointments declined during October, and employers remain concerned about costs and economic uncertainty.
However, there are signs of resilience.
Starting salaries are increasing more quickly, demand for permanent employees has improved in several professional sectors, and the decline in overall vacancies has slowed to its weakest pace in more than two years.
These developments suggest that opportunities remain available despite wider economic pressures. For workers, the challenge is identifying where demand is strengthening and understanding how their experience and qualifications can improve their employment prospects.
For employers, the figures demonstrate that attracting capable employees may still require competitive salaries and attractive working conditions.
A cautious but encouraging outlook for British workers
The latest recruitment figures provide an important reminder that the UK employment market is not moving uniformly in one direction. Some businesses are delaying recruitment, while others continue investing in skilled employees and offering improved starting salaries.
The strongest opportunities appear concentrated in industries where specialist knowledge and technical experience remain valuable. Although the wider outlook remains uncertain, the improvement in starting pay and the slower decline in vacancies offer reasons for cautious optimism.
For British workers considering their next career move, the message is clear: the jobs market remains challenging, but employers are still prepared to reward valuable skills, experience and expertise.
