Full Breakdown
UK Hiring Stabilizes in July, Ending 45-Month Downturn
8/10/2026, 11:15:56 AM
Core Event: July Hiring Holds Steady
A survey released by the Recruitment & Employment Confederation (REC) and KPMG shows that British firms kept hiring levels flat in July, halting a 45-month decline that began after the 2022 Liz Truss crisis. Temporary vacancies rose for the first time in two years, while the drop in demand for full-time staff slowed to its weakest pace since September 2024.
Background & Context
The prolonged slump was driven by a combination of rising employment costs, political upheaval following the Truss budget, U.S. trade disputes and the energy shock from the Iran war. Those pressures suppressed permanent-staff placements, creating the longest downturn on record since the REC began tracking data in 1997. The recent stabilization suggests firms are beginning to look beyond those headwinds as the new Burnham administration takes office.
Data & Statistics
Official Statements & Responses
Maxine Bligh, chief membership and innovation officer at the REC, described the trend as “Rays of light are beginning to break through for the job market.” Callum Licence, group head of advisory at KPMG UK and Switzerland, added that “With a new government in place, businesses will be looking for signs that the new policies can translate into greater confidence to invest and hire.” Both officials noted that sustained improvement will depend on policy actions from Prime Minister Andy Burnham’s government.
What’s Next
The labour market will be a focal point for the Bank of England as it gauges second-round effects from the Iran energy shock. Burnham’s first budget, due October 28, is expected to outline the “everyday fixes” his administration plans to address the cost-of-living squeeze and to signal whether the hiring momentum can be reinforced.
