Key facts
- The UK jobs market showed tentative signs of stabilization in July.
- Recruiters stopped shedding permanent staff in July.
- Starting salaries for new hires saw a faster rise in July.
- The REC/KPMG survey provides data on the UK labor market.
- The Bank of England monitors starting salary increases as a key metric.
The UK labor market exhibited tentative signs of stabilization during July, as indicated by the latest REC/KPMG survey. A significant development noted in the survey is that recruiters have ceased the reduction of permanent staff numbers. This marks a shift from previous trends where permanent roles were being shed.
Furthermore, the survey revealed an acceleration in the growth of starting salaries for new hires. This faster rise in wages is a crucial indicator that the Bank of England closely monitors when formulating monetary policy. The stabilization in permanent staff hiring and the increased pace of salary growth collectively suggest a potential easing of downward pressures on the labor market.