REC/KPMG Survey: UK Jobs Market Stabilising as Permanent Hiring Recovers
UK Labour Market Trends and Survey Findings
Labour Market Shows Signs of Stabilisation
LONDON, Aug 10 (Reuters) - Britain's labour market showed tentative signs of stabilisation in July, when Andy Burnham became prime minister, as recruiters stopped shedding permanent staff, according to a survey on Monday that also showed a faster rise in starting salaries.
Permanent Job Placements End Downturn
The monthly gauge of permanent job placements from the Recruitment and Employment Confederation trade body and accountants KPMG increased to 50.0 from 49.1, ending a 45-month downturn.
Business Confidence and Government Policies
"With a new government in place, businesses will be looking for signs that the new policies can translate into greater confidence to invest and hire," said Callum Licence, head of advisory at KPMG UK and Switzerland.
Key Survey Highlights
Temporary Staff and Vacancies
• The survey's temporary staff placements gauge came in at 51.9 in July, down from 52.7 in June
• Availability of temporary staff increased by the smallest amount since May 2023
• Temporary vacancies increased for first time in two years
Wage Growth and Economic Impact
• Wage growth in pay for people newly hired to permanent roles was its strongest in six months while those for temporary roles hit a 26-month high
• Bank of England policymakers are closely watching pay pressures in the economy
Survey Methodology
• The survey was based on responses from a panel of around 400 recruitment agencies between July 9 and July 27
(Reporting by Suban Abdulla; editing by David Milliken)
