London Job Market: The Reality Check 2024
In the latest scoop from KPMG & REC, the London job scene struck a low note last month. After a brief breath of fresh air in July (an uptick for the first time in 22 months), August saw permanent placements plummet, taking the rush of new hires to their steepest decline since March.
Temporary Work? Slowed Down, But Still Going Strong
While the permanent side did a nosedive, temporary billings didn’t go all the way to the ground—they slowed to an eighth straight month of drop, the second‑weakest pace seen so far, just a touch faster than July. Think of it like the “slow roll‑up” you see when a toy car finally stops. The South of England was the only region that saw temp billings visibly slip that month.
Demand Grows, Then Shrinks—Same Old Story
Permanent vacancy numbers were a mixed bag: after a modest surge in July, the realignment happened in 17 of the last 18 surveys. Only the North bucked the trend and logged a modest lift. Temporary vacancies flushed up slightly in July worldwide, but in August they basically hit pause.
Salary Whisperers: Inflation Gave the Pressure Off
Salary inflation took an easement, slipping into a five‑month low. For the first time in three‑and‑a‑half years, hourly rates for temp workers fell. Basically, the market overheated and is now catching its breath.
Supply Side: A Tug‑of‑War Between Permanent & Temp
- Permanent applicants kept rolling in across London:
- Growth slowed a bit, but still entered the second‑strongest rate of all four regions.
- Redundancies and a flood of seasoned professionals boosted numbers.
- Only the South of England outpaced London with the highest surge.
- Temporary supply did what it usually does—kept growing:
- On a 20‑month run of growth, the rise reached a four‑month high.
- Full‑time folks adding part‑time gigs to woo extra cash bolstered the count.
- All regions except the North registered stronger upticks.
How the Data Was Gathered
Expert Source: The report is stitched together courtesy of S&P Global and based on a dozen well‑circulated questionnaires sent out to roughly 100 recruitment and employment consultancies across London.
Bottom Line – What You Need to Know
So, London’s job market is currently in a bit of a slump for permanent roles but still enjoying a steady stream on the temp side. Salaries are cooling, and recruiters say the market is hungry for the right candidates. If you’re hunting for a permanent gig, it might take a little extra patience—or a clever pitch. If the temporary gig like it, the numbers are still moving in your favor.
Permanent salary growth eases notably
London’s Pay Surge: Permanent Joiners Keep Climbing
August saw a noticeable rise in salaries for permanent new joiners across the capital, continuing the upward trend that kicked off in March 2021. Recruiters say employers are offering higher wages to snag the right talent. Meanwhile, overall inflation slid to a five‑month low, staying below the long‑run average.
What the Numbers Show
- Permanent salaries in London jumped this summer, mirroring changes seen nationwide.
- Across the UK, varied by region, the increase was broadly consistent.
- For the first time in three‑and‑a‑half years, temp wages fell in August, with London and the South of England seeing the dip.
- The North and Midlands recorded slower growth but still kept up a steady climb.
Voices from the Industry
Anna Purchas, Senior Partner at KPMG London: “The summer pause in hiring has slowed both permanent and temporary demand. Although the economy is showing slight improvements, employers remain cautious, focusing on key roles while capitalizing on the expanding candidate pool and a drop in starting salaries.”
Neil Carberry, REC Chief Executive: “August is always tricky because of the summer break, but our survey confirms the industry’s caution. Employers are waiting for a clear signal that demand will pick up. The new government’s promise of growth needs to be backed by action. It’s a test for the Chancellor and Prime Minister this autumn.”
He added: “Despite some bumps, the job market’s underlying momentum is solid. The drop in temp billings in London and the easing of permanent starting pay to a five‑month low should reassure the Bank that cutting interest rates was the right move. Yet, employers are wary of potential labour‑market challenges from government initiatives. Rapid change could hurt investment and work opportunities, so we’re encouraging policies that work with the business community.”
His final note: “Our ‘Voice of the Worker’ campaign shows that people want flexibility. Any new regulations should support that freedom, rather than imposing rigid structures.”
Looking Ahead
While the summer ushered in a temporary slowdown, the end of the holiday season and the forthcoming Budget could spur renewed confidence. If September delivers the right economic signals, firms might finally step up their growth and investment plans after years of pause.
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