UK’s jobs market shows signs of stabilisation, REC/KPMG say

Britain's labour market demonstrated tentative signs of stabilisation in July, according to a recently released survey. The Recruitment and Employment Confederation (REC) and accountants KPMG found that permanent job placements increased to 50.0 from 49.1, marking the end of a 45-month downturn. Andy Burnham's appointment as prime minister seemed to have a positive impact on the market.

The number of temporary staff placements decreased slightly, from 52.7 in June to 51.9 in July. However, the availability of temporary staff remained relatively stable, with the smallest increase since May 2023. Temporary vacancies also rose for the first time in two years. Moreover, wage growth for newly hired permanent staff reached its strongest level in six months, while temporary roles experienced a 26-month high.

Bank of England policymakers have been closely monitoring pay pressures in the economy, as businesses await signs that new policies will lead to greater confidence in investment and hiring. The survey, which included responses from approximately 400 recruitment agencies, was conducted between July 9 and July 27.