The UK jobs market is showing tentative signs of improvement, with permanent recruitment no longer falling for the first time in almost four years.
New analysis from the Recruitment and Employment Confederation (REC) shows that its permanent staff placements index reached 50 in July—the point that separates growth from contraction.
The index had remained below that level since 2022, reflecting a prolonged period of weakness in permanent hiring as employers dealt with higher costs, economic uncertainty and softer demand.
The latest figures suggest that some businesses are beginning to revive recruitment plans, although the recovery remains cautious rather than dramatic.
Maxine Bligh, Chief Membership and Innovation Officer at the REC, described the data as an encouraging sign for the labour market, noting that July was the first month without a decline in permanent placements since Liz Truss resigned as Prime Minister in 2022.
Vacancies also improved, with the index rising to 47.1—its highest level since September 2024. While this still points to a subdued recruitment market overall, the increase suggests demand for staff may be starting to stabilise.
Part-time vacancies provided another positive signal, rising at their fastest pace since August 2023.
For employers and jobseekers, the figures point to a labour market that may finally be beginning to turn a corner. Permanent hiring is no longer shrinking, vacancy levels are improving and demand for part-time staff is picking up.
The challenge now is whether this momentum can be sustained. After several years of weak hiring activity, businesses are likely to remain cautious until confidence in the wider economy strengthens further.
