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UK Jobs Market Downturn Eases as Pay Pressure Rise, Survey

July 8 (Reuters) - Britain's jobs market downturn eased slightly last month, according to a survey of recruitment companies on Wednesday that ​showed an upturn in temporary hiring and starting ‌salaries.

The monthly Report on Jobs from accountants KPMG and the Recruitment and Employment Confederation, a trade body, showed temporary billings ​growth rose to a more than three-year high ​in June, although permanent placements contracted.

"The story of ⁠the past few months has been the pivot to ​temporary work," said Lisa Fernihough, vice chair advisory at ​KPMG.

Below are key points from the survey and relevant context:

• While overall demand for staff weakened at the fastest pace in ​five months, the survey's gauge of permanent starting ​salaries hit a five-month high

• Bank of England policymakers are watching ‌pay ⁠pressures closely

• "With chief execs still facing into global uncertainty, this preference for a flexible approach to hiring means they have been able to progress shorter term projects ​and investment s ​without longer ⁠term commitments," Fernihough said

• Recent business surveys suggest activity - especially in the services sector - has ​slowed sharply in recent months after official ​data showed ⁠the economy grew strongly at the start of 2026

• "With oil prices steadying, business leaders will be hoping that ⁠the ​coming months bring a period of ​stability and improved economic conditions where they can start to build momentum ​again," Fernihough added

Reporting by Andy Bruce; editing by Suban Abdulla

Source: Reuters


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