Key facts
- The UK jobs market showed a slight easing in June.
- Temporary hiring and starting salaries increased.
- Permanent placements continued to decline.
- Overall demand for staff weakened at the fastest pace in five months.
- Permanent starting salaries reached a five-month high.
- Bank of England policymakers are closely monitoring pay pressures.
Britain's jobs market showed signs of easing in June, with a survey by KPMG and the Recruitment and Employment Confederation indicating an increase in temporary hiring and starting salaries. Despite a continued contraction in permanent placements and the fastest pace of weakening demand for staff in five months, permanent starting salaries reached a five-month high. This pickup in pay pressure is being closely watched by Bank of England policymakers. The preference for temporary work allows businesses to manage projects and investments with greater flexibility amidst global uncertainty. Recent business surveys suggest a slowdown in economic activity, particularly in the services sector, following strong growth at the start of the year. Business leaders are hopeful for a period of stability and improved economic conditions.