The UK job market may be thawing as employers revive recruitment plans.

Permanent appointments stabilised in July after 45 months of decline dating back to 2022, said a study by accountants KPMG and industry body Recruitment and Employment Confederation (REC). 

Temporary vacancies rose for the first time in two years and demand for staff fell at its slowest pace in 22 months. Demand for permanent staff is still subdued due to uncertainty caused by political upheaval.

Higher labour costs have also hit businesses as more have been looking to hire staff on a flexible basis, researchers said.

Callum Licence, head of advisory at KPMG, said: ‘With a new Government, businesses will be looking for signs that new policies can translate into greater confidence to invest and hire.’

Maxine Bligh, chief membership and innovation officer at the REC, said: ‘Rays of light are beginning to break through.’