UK hiring activity weakened further in August 2025, with permanent placements and temp billings both declining, while candidate availability rose at the fastest pace since late 2020.

• Permanent staff hiring contracted again, though the rate of decline was the slowest in three months, reflecting ongoing cost pressures and weak confidence.

• Temporary billings also fell, extending the trend of softer recruitment activity across the UK.

• Candidate availability surged, with both permanent and temporary labour supply rising sharply; redundancies and job security concerns were key drivers.

• Overall vacancies dropped at the steepest pace in six months, led by a sharper contraction in permanent openings compared with temp jobs.

• Starting salaries and temp pay rose slightly but at their slowest rate in four-and-a-half years, signaling subdued wage growth despite increased labour supply.