Starting salaries for permanent staff in the UK declined in February at the slowest pace since October, according to a survey released by the Recruitment and Employment Confederation and KPMG, signalling early signs of stabilisation in the labour market.
The survey’s index for permanent staff placements rose to 49.2 in February, up from 46.9 in January, marking the strongest level recorded in nearly three years. Although the index remains below the neutral 50 threshold, indicating a continued contraction in hiring activity, the data suggests that the decline in recruitment is easing.
Jon Holt, group chief executive and UK senior partner at KPMG, said the latest figures point to improving momentum in the jobs market. “Despite a marginal fall in hiring last month, the jobs market was showing its strongest signs of improvement in three years, with hiring at its closest point to turning positive,” he noted.
The report also highlighted mixed trends across hiring segments. While permanent hiring conditions improved, the temporary staff hiring index declined to 48.0 in February from 50.3 in January, indicating a renewed slowdown in short-term recruitment demand.At the same time, the availability of candidates for permanent roles increased sharply, suggesting that more jobseekers are entering the labour market. Meanwhile, the availability of temporary workers rose at the slowest pace in more than a year.
The findings are based on responses from around 400 recruitment agencies surveyed between February 10 and February 23. The data reflects ongoing adjustments in the UK labour market as employers balance cautious hiring strategies with shifting workforce demand.