Stabilisation in permanent hiring and an increase in temporary hiring in the UK in July mark the strongest signs of job market recovery in nearly four years, according to a monthly report.
The UK Report on Jobs’ main hiring measure — the Permanent Placements Index — reached the neutral level of 50 in July for the first time since hitting 51.2 in September 2022. The report’s Temporary Billings Index has been above 50 for four consecutive months, signalling a continued reliance on contract work over full-time, permanent labour.
The report, from KPMG UK and the Recruitment and Employment Confederation (REC), is compiled from the responses of about 400 UK recruitment and employment consultancies.
“Rays of light are beginning to break through for the job market as employers revive hiring plans,” Maxine Bligh, the REC’s chief membership and innovation officer, said in a news release.
The index reading related to temporary hiring was at 51.9, below June’s 52.7 but among the highest levels recorded since 2023. The index for permanent hiring was at 40 in July 2025.
“Recruiters noted that demand for permanent staff remained subdued amid political and economic uncertainty and higher labour costs,” the report said, “though some employers continued with hiring plans linked to new projects.”
The increase in starting salaries for permanent workers was the highest in six months, and the increase in temporary wages hit a 26-month high.
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