UK Labour Market Shows Early Signs of Stabilisation, REC/KPMG Survey Finds

Britain's labour market showed early signs of stabilisation in July, according to a monthly survey from the Recruitment and Employment Confederation (REC) and KPMG.

The survey's measure of permanent job placements rose to 50.0 in July from 49.1 in June, bringing a 45-month period of decline to an end. The improvement came as recruiters stopped reporting reductions in permanent staff placements.

Callum Licence, head of advisory at KPMG UK and Switzerland, said businesses would be looking for evidence that the new government's policies could strengthen confidence to invest and hire.

The index measuring temporary staff placements fell to 51.9 in July from 52.7 in June. At the same time, the availability of temporary workers recorded its smallest increase since May 2023.

Temporary job vacancies also increased for the first time in two years.

Pay growth for people starting permanent positions reached its strongest level in six months, while wage growth for newly hired temporary workers reached a 26-month high. Pay pressures remain an area closely monitored by Bank of England policymakers.

The survey was based on responses from around 400 recruitment agencies collected between July 9 and July 27.