UK jobs market finally showing 'rays of light' - especially if you're after permanent work

UK jobs market finally showing 'rays of light' - especially if you're after permanent work A decline in permanent jobs that has stretched on for 45 months has finally come to end, research from recruiters has revealed, showing a slither of sunshine on the horizon The jobs market is showing “rays of light” in a boost to those battling to find work, a report has found. Recruiters say a decline in workers getting permanent work that stretches all the way back to 2022, around the time failed Tory PM Liz Truss quit, has finally come to an end. The number of vacancies for temporary workers has also risen for the first time in two years, according to a report Recruitment and Employment Confederation (REC) and accountancy giant KPMG. The finding will give hope to those who have found it increasingly difficult to bag a job. It will also prove another welcome sign for new PM Andy Burnham and Chancellor John Healey as they look for signs of recovery in the economy. That said, the latest research still shows how any upturn in the jobs market could be some way off. While the number of job hunters being placed in permanent jobs by recruiters stabilised in July, it followed 45 months of decline. It added: “Recruiters noted that demand for permanent staff remained subdued amid political and economic uncertainty and higher labour costs.” The data also showed employers remain nervous about taking on permanent workers, highlighted by demand for temporary workers instead. Though modest, the rate of growth was the quickest seen since August 2023. On the flipside, the number of people looking for work rose again last month, extending a run of increases that goes back nearly three-and-a-half years. “The latest increases in staff supply were generally linked to redundancies and a lack of job opportunities,” the report said. Demand for permanent workers was sharpest among nurses, medical and car workers. The biggest decline was among shop workers and those in hotel and catering Maxine Bligh, the Recruitment and Employment Confederation’s chief membership and innovation officer, said: “Rays of light are beginning to break through for the job market as employers revive hiring plans. That makes it all the more important that the government takes decisions now that builds business confidence and momentum in hiring. "This means action to bring the Industrial Strategy to life and exercising pragmatism around the implementation of the Employment Rights Act, particularly guaranteed hours proposals. The Autumn Budget is a great opportunity to give businesses the shot of confidence they need to hire and invest." Callum Licence, group head of advisory at KPMG UK and Switzerland, said: “Despite ongoing uncertainty it’s encouraging that businesses are starting to press ahead with investment, which means across the board we are starting to see the data moving in the right direction. This is most pronounced in the continued rise of temporary work, where employers have been looking at flexible approaches and hiring has been growing for several months, and permanent hiring is starting to turn a corner. “Over the past 45 months we have seen the longest recorded period of contraction in the permanent placements index, so to finally have it stable is a big milestone. With a new Government in place, businesses will be looking for signs that the new policies can translate into greater confidence to invest and hire”.