Business News Round Up (10/10/2025)
KPMG and REC, UK Report on Jobs
The latest KPMG and REC, UK Report on Jobs survey, compiled by S&P Global, revealed a further, albeit softer, decline in the recruitment of permanent staff at the end of Q3. Low employer confidence and cost concerns weighed on staff hiring, according to survey participants. Vacancies data highlighted a marked drop in demand for staff that was similar to that seen in August. The sustained fall in hiring and reports of redundancies drove a further rapid increase in candidate numbers for both permanent and temporary positions. The shift in demand and supply for workers placed downward pressure on pay, with both permanent salaries and temp pay rates up only marginally. September survey data signalled a weaker drop in permanent staff appointments across the UK, with the latest reduction the softest seen for a year.
https://kpmg.com/uk/en/media/press-releases/2025/10/kpmg-and-rec-report-on-jobs-october.html
UKHospitality Scotland calls for budget action as cost pressures rise
UKHospitality Scotland has renewed calls for government support following the release of new business data highlighting ongoing cost pressures across the Scottish economy. The latest findings from the Fraser of Allander Institute underscore the challenges facing hospitality operators as they navigate rising operational expenses. The comments come as new economic data reveals widespread business concerns across Scotland. The Scottish Chambers of Commerce Quarterly Economic Indicator, produced in partnership with the Fraser of Allander Institute, surveyed 440 businesses and found significant cost pressures affecting multiple sectors. Key findings show that 78% experienced higher costs this quarter, with 80% expect further cost increases. The survey also found that 72% of firms report increased concern around tax and 77% of businesses said that labour costs remain significant.
Slower falls in permanent placements – but support needed in upcoming budget
The decline in permanent staff hiring eased across the North of England last month. However, the latest KPMG and REC, UK Report on Jobs: North of England survey warned that, while sharp, the latest reduction in permanent placements was the least pronounced in five months and slightly softer than the UK-wide trend. Meanwhile, temporary billings rose for the first time in nearly a year. Demand for staff continued to fall across the region, particularly for permanent workers. At the same time, increases in candidate availability slowed since August but remained marked. Pay trends were subdued, with both starting salaries and temp pay falling for the second month in a row. The report is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the North of England. Both permanent and temporary job vacancies continued to fall across the North of England in September.
Business falling well short of net zero targets
Businesses continue to feel misunderstood by government and are falling well short of government net zero ambitions, according to the Fraser of Allander Institute. Its third quarter business monitor reveals 40% of Scotland’s businesses have made no financial, operational, or strategic preparations to hit net zero targets. Worryingly, it says, nearly half of all firms are not prepared financially, “implying a lack of understanding of how to finance the transition”. Only a small share of businesses report being in the planning stage, suggesting few of the unprepared firms are progressing toward readiness. Fewer than 1 in 20 consider themselves fully prepared, though the report notes that this is not surprising, given the Scottish and UK Governments’ targets are in 2045 and 2050, respectively. The survey revealed that relations with the Scottish Government have improved since last year, but businesses feel less able to influence policies which affect them.