Short answer: the number of people placed into permanent jobs across the South of England has fallen every month since April 2023. In October 2026 the South recorded the sharpest drop of any English region (KPMG and REC, November 2026).
A recovery that skipped the South
The KPMG and REC Report on Jobs is compiled by S&P Global from a monthly survey of around 400 UK recruitment and employment consultancies (S&P Global, August 2026). Its South of England region covers the South East, the East of England and the South West (S&P Global, May 2026). Horsham sits in the South East.
Across the UK, hiring picked up over the summer. Permanent placements stabilised in July (S&P Global). In August they rose for the first time in nearly four years (REC).
The South never joined in. In June, the regional report described the slowest fall “since the current period of contraction began in April 2023” (S&P Global, July 2026). Every report since has recorded another fall.
| Month (2026) | Permanent placements in the South of England | Source |
|---|---|---|
| February | Fell, but at the slowest rate since October 2023 | S&P Global, 9 March |
| March | Fell at the steepest rate in six months | S&P Global, 13 April |
| April | Fell at the quickest rate in eight months | S&P Global, 11 May |
| May | Fell at a marked pace | S&P Global, 8 June |
| June | Fell at the slowest rate since April 2023 | S&P Global, 8 July |
| July | Fell again as the UK figure stabilised | S&P Global, 10 August |
| August | Fell while London and the Midlands grew | REC, 7 September |
| September | The only English region to fall | REC, 8 October |
| October | The sharpest drop of any English region | KPMG, 9 November |
More candidates, but the right ones are scarce
October brought more people onto the market. The supply of candidates “rose sharply”. Recruiters pointed to redundancies and fewer job openings (KPMG).
Yet starting pay rose faster in October, for both permanent and temporary staff. Recruiters linked this to efforts to secure high-calibre candidates, “which were often in short supply”. Pay growth stayed below its historical average (same report).
So there are more applicants, but not more of the people employers most want to hire. Those candidates still have options. They still cost more.
Demand has not collapsed either. Permanent vacancies fell at their weakest rate since August 2024. Six of the ten job categories tracked saw higher demand for permanent staff, led by IT & Computing and Engineering (KPMG).
Why employers are holding back
Jonathan Holt leads KPMG in the UK and Switzerland. He said “October saw employers pull back on hiring in the month leading up to the Budget”. Maxine Bligh, Interim Chief Executive of the REC, said “many employers are taking a more cautious approach” (KPMG).
In the South that caution is not new. In July, KPMG’s David Williams said: “June’s figures suggest the South of England labour market is becoming more active, but not necessarily more secure” (S&P Global).
What this means if you hire in Horsham
When competitors hold back, a business that does hire faces fewer rival offers. That window will close once confidence returns and paused roles come back at the same time.
The catch is who you can reach. The candidates in short supply are rarely the ones replying to adverts. Strong people who are already in work need a direct approach and a clear reason to move. A bigger pile of applications does not change that.
Pay matters too. Starting salaries are rising because good people are hard to find. An offer pitched at last year’s rate can lose a strong candidate at the final stage. This is likely to bite hardest in IT and engineering, where permanent demand is already growing.
Ashley has over 15 years of recruitment experience in Horsham and West Sussex. She screens and interviews every candidate herself and presents three to five people who fit. The fee is only payable once your new hire starts.
If you have a role to fill while others are waiting, tell Ashley what you need and she will call you back.