Key facts
- The UK labor market showed tentative signs of stabilization in July.
- Permanent job placements rose to 50.0, ending a 45-month decline.
- Starting salaries for permanent roles saw their strongest growth in six months.
- Temporary vacancies increased for the first time in two years.
- The survey is closely watched by the Bank of England for pay pressure insights.
Britain's labor market displayed tentative signs of stabilization in July, according to a survey by the Recruitment and Employment Confederation (REC) and KPMG. The gauge for permanent job placements rose to 50.0, marking the end of a 45-month downturn. This indicates that recruiters stopped shedding permanent staff.
While the index for temporary staff placements dipped to 51.9 from 52.7 in June, the availability of temporary staff increased at the slowest pace since May 2023. Notably, temporary vacancies saw an increase for the first time in two years.
Starting salaries for newly hired permanent employees experienced their strongest growth in six months, while temporary roles saw wage growth hit a 26-month high. These pay pressures are closely monitored by Bank of England policymakers.
The survey, which polled around 400 recruitment agencies between July 9 and July 27, also suggested that businesses are looking for signs that new government policies will translate into greater confidence to invest and hire.