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UK Jobs Market Shows Signs of Life
10 Aug
Summary
- Temporary vacancies are up for the first time in two years.
- Starting salary inflation reached its highest level in six months.
- Permanent placements stabilized in July after a long decline.

Signs of improvement are emerging in the UK jobs market as of July 2026, with pay showing an upturn and temporary vacancies rising for the first time in two years. Employers are increasingly seeking flexible hiring approaches.
Permanent job placements stabilized in July, marking the end of a 45-month decline. This stabilization was particularly noted in London and the Midlands, which experienced renewed upturns in permanent staff hiring. Overall demand for workers fell at its softest pace in 22 months.
Pay continued to improve, with starting salary inflation reaching a six-month high, driven partly by a scarcity of skilled candidates. Temporary wage growth hit a 26-month high, though still slower than the long-term trend. Recruiters' revenue from temporary workers has risen for four consecutive months.