UK jobs market downturn eases as temporary hiring picks up
Britain's labour market shows signs of stabilising in June as temporary recruitment and starting pay strengthen despite continued weakness in permanent hiring. The shift matters for policymakers because the Bank of England is monitoring wage pressures closely while broader business activity, especially in services, slows.
Highlights
- Britain's jobs market downturn eased in June as temporary billings growth hit a three-year high while permanent placements continued to decline.
- Demand for staff weakened at the fastest pace in five months, but permanent starting salaries rose to a five-month high, indicating persistent wage pressure.
- Rising temporary hiring and wages present new data points for Bank of England policymakers monitoring inflation and economic outlook amid ongoing global uncertainty.
June survey points to more flexible hiring
As reported by Reuters, citing KPMG and the Recruitment and Employment Confederation in their monthly Report on Jobs, Britain's jobs market downturn eases slightly last month, with temporary billings growth reaching its highest level in more than three years even as permanent placements continue to contract.The survey also shows overall demand for staff weakens at the fastest pace in five months. At the same time, its measure of permanent starting salaries rises to a five-month high, indicating pay pressure is still building in parts of the market.
Lisa Fernihough, vice chair advisory at KPMG, says the past few months are defined by a pivot to temporary work. She says chief executives facing global uncertainty prefer a flexible approach to hiring, allowing them to move ahead with shorter-term projects and investments without making longer-term commitments.
Wage signals add to Bank of England focus
The improvement in temporary hiring and starting salaries adds a fresh signal for Bank of England policymakers, who are watching pay trends closely as they assess inflation risks and the broader economic outlook.Recent business surveys suggest activity, particularly in the services sector, slows sharply in recent months after official data show the economy grows strongly at the start of 2026. Fernihough says steadier oil prices could help business leaders look for a period of greater stability and improved economic conditions in the coming months.
Our earlier article on the FCA’s Mills Review examined how generative AI is blurring the line between regulated investment advice and general financial guidance for UK retail consumers. It highlighted gaps in user understanding of liability and potential consumer-protection risks, alongside targeted steps such as clearer disclaimers on AI-generated investment responses and tighter disclosure rules for sponsored financial content.
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