Britain’s Labour Market Shows Tentative Stabilisation in July

In July, the month Andy Burnham assumed the role of prime minister, Britain’s labour market displayed early signs of stabilisation. Recruiters ceased the practice of shedding permanent staff, and the pace of starting-salary growth accelerated, according to a survey released on Monday.

Reuters

The monthly gauge of permanent job placements, compiled by the Recruitment and Employment Confederation trade body in partnership with accountants KPMG, had been in decline for 45 months. The latest reading marks the first reversal of that trend.

Reuters

• The permanent-placement gauge rose to 50.0 in July, up from 49.1 the previous month.

Reuters

• The increase ends a 45-month downturn in permanent job placements.

Reuters

• The survey also noted a faster rise in starting salaries, though specific figures were not disclosed.

Reuters

Callum Licence, head of advisory at KPMG UK and Switzerland, linked the market shift to the new government’s policy agenda. He suggested that businesses will be watching for evidence that policy changes can boost confidence to invest and hire.

Reuters

“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,” — Callum Licence, head of advisory at KPMG UK and Switzerland

Reuters