Britain’s labour market showed early signs of stabilising in July, according to a survey by the Recruitment and Employment Confederation and KPMG.
The index for permanent job placements rose to 50.0 from 49.1, ending a downturn that had lasted 45 months. Temporary vacancies also increased for the first time in two years, although the temporary placements index eased to 51.9 from 52.7 in June.
Pay pressure strengthened at the same time. Starting salaries for newly hired permanent workers recorded their fastest growth in six months, while pay for temporary roles rose at the strongest pace in 26 months.
The findings were based on responses from about 400 recruitment agencies between July 9 and July 27. The Bank of England is closely monitoring wage developments as it assesses inflationary pressure in the economy.
