UK Hiring Slowdown Shows Signs of Easing as Temporary Recruitment and Pay Improve

Britain's labour market showed early signs of improvement in June, according to the latest Report on Jobs released by KPMG and the Recruitment and Employment Confederation (REC).

The survey found that temporary hiring strengthened, with temporary billings recording their fastest growth in more than three years. At the same time, permanent job placements continued to decline.

Lisa Fernihough, Vice Chair of Advisory at KPMG, said recent months have seen employers shift their focus toward temporary hiring. She noted that ongoing global uncertainty has encouraged business leaders to remain flexible, allowing them to support short-term projects and investments without making long-term hiring commitments.

The survey also showed that overall demand for staff fell at the quickest pace in five months. However, permanent starting salaries increased at the fastest rate seen in the past five months, highlighting continued wage pressures that are being closely monitored by the Bank of England.

Recent business surveys indicate that economic activity, particularly in the services sector, has slowed after a strong start to 2026. Fernihough added that businesses are looking for greater stability in the coming months to help rebuild momentum.