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Starting salaries for permanent staff in Britain showed their biggest rise in nearly a year and a half in January, according to a survey on Monday that also showed the downturn in the number of new permanent staff recruiters hired eased.
The monthly Report on Jobs from accountants KPMG and the Recruitment and Employment Confederation, a trade body, showed wage growth in pay for people newly hired to permanent roles was its strongest since August 2024.
Its measure of permanent job placements contracted at the slowest rate since July 2024.
Recruiters said some firms increased hiring once uncertainty around finance minister Rachel Reeves’ budget on November 26 had lifted, according to the survey.
“After a difficult end to last year, it’s encouraging to start this year with tentative signs that hiring appetites are beginning to improve as chief executives respond to signs of easing uncertainty by starting to push forward with their plans,” Lisa Fernihough, head of advisory at KPMG, said.
REC Chief Executive Neil Carberry said January’s figures did not indicate a broad upswing in hiring, but a “wait-and-see” period did appear to be ending.
REC and KPMG also said:
* The survey’s permanent staff placements gauge came in at46.9 in January, up from 44.3 in December; * Temporary staff hiring rose to 50.3 from 47.6, partly dueto demand for short-term staff and new projects; * The availability of candidates for permanent roles rose atthe softest pace in a year; * Vacancies fell for the 27th month in a row; * The survey was based on responses from a panel of around400 recruitment agencies between January 12 and January 26.
(Reporting by Suban Abdulla; editing by David Milliken)
