Britain’s recruitment market showed its first clear sign of improvement in almost four years in August, with the number of people placed into permanent jobs rising for the first time since late
2022, according to new industry data.
The monthly permanent placements index compiled by the Recruitment and Employment Confederation (REC) and KPMG increased to 50.5 in August from 50.0 in July. A reading above 50 indicates growth, marking the first expansion in permanent hiring since September 2022.
The figures suggest that employers may be becoming somewhat more willing to commit to long-term recruitment after an extended period of caution. However, the broader labour market remains under pressure, with overall vacancies continuing to decline.
Temporary employment activity also strengthened during the month. Billings for temporary workers increased at their second-fastest rate in more than three years, pointing to stronger demand for short-term staffing even as businesses remain cautious about permanent headcount.
The survey found that total vacancies fell again in August, extending the contraction in the jobs market. Nevertheless, the decline was the second weakest recorded in almost two years, providing another indication that conditions may be stabilising.
At the same time, the supply of available workers increased at its fastest pace in three months. Recruiters attributed part of the rise to redundancies, suggesting that companies shedding staff are continuing to add to the pool of people seeking work.
Pay growth also showed signs of strengthening. Starting salaries for permanent positions rose at their fastest pace since January, indicating that employers are facing some renewed pressure to offer more competitive packages when making permanent hires.
The combination of stronger permanent placements, improving temporary recruitment and a slower decline in vacancies points to a labour market that may be moving towards greater stability. However, the continued fall in overall vacancies and rising candidate availability underline the challenges facing workers and businesses.
The latest figures therefore offer a cautiously positive signal rather than evidence of a broad-based recovery, with recruiters still reporting an uneven employment market as companies balance hiring needs against economic uncertainty. Photo by Phil Whitehouse, Wikimedia commons.
