UK Hiring Accelerates for First Time in Four Years

UK firms increased hiring of full-time staff in August, according to the Recruitment and Employment Confederation's (REC) index. This marked growth for the first time since September 2022, reflecting a rise in business optimism as companies secure new contracts.

Employers had been relying on temporary hires to adapt to a volatile environment, but the uptick in permanent hiring suggests 'confidence is beginning to return to the market', said Jon Holt, group chief executive at KPMG UK.

The survey's findings added to evidence that the labour market is holding up despite a global energy shock and elevated interest rates. The Bank of England (BoE) policymakers have kept interest rates on hold as they weigh the risk of renewed inflation against a weak economic backdrop.