UK Jobs Market Downturn Eases Amid Rising Pay Pressure, Survey Finds
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UK Jobs Market Downturn Slows as Pay Pressure and Temp Hiring Rise
Overview of Recent UK Jobs Market Trends
July 8 (Reuters) – Britain’s jobs market downturn eased slightly last month, according to a survey of recruitment companies on Wednesday that showed an upturn in temporary hiring and starting salaries.
Key Findings from the Report on Jobs
The monthly Report on Jobs from accountants KPMG and the Recruitment and Employment Confederation, a trade body, showed temporary billings growth rose to a more than three-year high in June, although permanent placements contracted.
Temporary Hiring on the Rise
“The story of the past few months has been the pivot to temporary work,” said Lisa Fernihough, vice chair advisory at KPMG.
Survey Highlights and Market Context
Below are key points from the survey and relevant context:
Demand for Staff and Pay Pressures
• While overall demand for staff weakened at the fastest pace in five months, the survey’s gauge of permanent starting salaries hit a five-month high
• Bank of England policymakers are watching pay pressures closely
Hiring Preferences Amid Economic Uncertainty
• “With chief execs still facing into global uncertainty, this preference for a flexible approach to hiring means they have been able to progress shorter term projects and investment s without longer term commitments,” Fernihough said
Business Activity and Economic Outlook
• Recent business surveys suggest activity – especially in the services sector – has slowed sharply in recent months after official data showed the economy grew strongly at the start of 2026
• “With oil prices steadying, business leaders will be hoping that the coming months bring a period of stability and improved economic conditions where they can start to build momentum again,” Fernihough added
(Reporting by Andy Bruce; editing by Suban Abdulla)
