UK permanent hiring turns positive after two-year slump, vacancies keep sliding

Britain’s permanent hiring increased in August for the first time since September 2022, with the REC-KPMG index rising to 50.5 from 50.0 in July, suggesting recruitment may be stabilizing after a prolonged downturn. Temporary staff demand also strengthened, while starting salaries for permanent roles recorded their fastest growth since January. Recruiters attributed the improvement to better business sentiment, new contracts and heavier workloads, although the recovery was uneven across regions. Vacancies continued to decline and candidate availability rose, partly because of redundancies, underscoring ongoing caution among employers and continued pressure in the labor market. The figures, alongside more optimistic Bank of England business surveys, offer tentative evidence of improving confidence but not yet a broad-based recovery.