The number of job postings in the UK rose for the first time in seven months this January, suggesting that the job market may be holding up despite increased employer taxes, according to a

survey released on Friday.

The Recruitment & Employment Confederation (REC) reported that active job postings climbed to 1.52 million, marking a 7.2% rise from December, which had been sluggish. This was the first monthly increase since June.

While hiring typically picks up at the start of the year, the 34.4% jump in new postings from December to January was notably stronger than the 27.9% increase seen during the same period last year.

The Bank of England is closely monitoring the labour market as it weighs potential interest rate cuts. The central bank has suggested that a slowdown in hiring could help curb long-term inflation pressures.

Concerns had been raised that Chancellor Rachel Reeves' plan to raise employer social security contributions in April might lead to staffing reductions or redundancies. However, official data last week indicated stronger-than-expected hiring activity in late 2024.

REC's reported job postings are nearly double the 759,000 vacancies recorded by the UK's Office for National Statistics (ONS) for January. The ONS data—like REC's figures, not seasonally adjusted—showed a 1.3% increase from December’s three-year low.

"While businesses are facing tough decisions, today's report suggests it's too soon to be pessimistic about the UK's economic outlook for 2025," said Kate Shoesmith, Deputy Chief Executive at REC.

"We will be watching closely in the coming months to determine whether this signals a broader recovery," she added. Photo by Phil Whitehouse, Wikimedia commons.