UK jobs growth continues as firms "press ahead" with hiring investment
(Alliance News) - The UK jobs market is showing "rays of light", KPMG and the Recruitment & Employment Confederation reported on Monday, with continued growth in temporary billings last month.
The permanent placements index registered 50 in July, indicating no change. This was an improvement from June's reading of 49.1, when the market was still in contraction territory.
The temporary billings index decreased to 51.9 in July from 52.9 in June, although KPMG said growth remained among the quickest since early 2023.
It also noted "stronger upturns in pay" for both temporary and permanent employees, and an increase in temporary vacancies for the first time in two years.
"Despite ongoing uncertainty it's encouraging that businesses are starting to press ahead with investment, which means across the board we are starting to see the data moving in the right direction," commented KPMG UK & Switzerland Group Head of Advisory Callum Licence.
He added: "Over the past 45 months we have seen the longest recorded period of contraction in the permanent placements index, so to finally have it stable is a big milestone. 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."
Meanwhile, REC Chief Membership & Innovation Officer Maxine Bligh said: "Rays of light are beginning to break through for the job market as employers revive hiring plans...Remarkably, this is the first month without a decline in permanent placements since Liz Truss resigned as prime minister in 2022, underlining just how prolonged the downturn in permanent hiring has been."
By Emma Curzon, Alliance News reporter
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