Britain’s jobs market cooled in October but starting salaries for permanent jobs rose at a faster pace, according to a survey ​of recruiters published a few days after the Bank of ‌England raised interest rates.

The monthly survey by the Recruitment and Employment Confederation trade body and accountants KPMG showed hiring for permanent roles ​in October fell for the first time in four months.

“Businesses will ​now be assessing whether the measures announced in the Budget ⁠give them enough stability to absorb the external pressures and higher ​costs they face,” said Jon Holt, group chief executive and UK senior ​partner at KPMG.

“But with the Bank of England increasing interest rates and inflation set to continue rising over the coming months, there is a risk the green shoots ​we had been seeing in the jobs market could stall.”

The survey ​also showed:

  • The survey’s permanent staff placements gauge fell to 46.6, the lowest since May ‌and ⁠down from 50.9 in September, partly due to firms’ concerns about the economy and rising costs
  • Temporary staff hiring fell to 48.9 from 50.9, the first fall since March
  • The availability of candidates for permanent and temporary roles ​edged up
  • Vacancies doe permanent ​jobs contracted ⁠at the softest pace since August 2024, and those for temporary roles rose marginally
  • The BoE raised interest rates by ​a quarter-point to 4 per cent last week and its policymakers ​warned that ⁠at least one more increase was likely if the US-Iran conflict continues
  • Investors see at least two 25 basis-point hikes in 2027
  • The survey of around 400 ⁠recruitment ​and employment consultancies, was conducted between October ​12 and October 26, before finance minister John Healey’s budget
  • Healey’s first annual budget on October 28 did ​little to shift the outlook for growth or inflation