Britain's drop in full-time hiring was its weakest in over a year in May, data from the Recruitment and Employment Confederation revealed, fueling hopes that the recruitment market may be on track for recovery.
Permanent hiring fell by the smallest amount in 14 months, the REC report showed, potentially providing a boost for the UK as the Bank of England scrutinises the study ahead of making a decision over when to cut rates.
"The jobs market looks like it's on its way back, with clear improvements over last month on most key measures," REC Chief Executive Neil Carberry said.
He added that the upcoming election and the prospect of interest rate cuts could remove employers' hesitancy over hiring new workers, which could help boost the performances of recruitment firms.
Meanwhile, unemployment data revealed the number of people looking for a job had risen to its highest rate since 2020.
A mix of increased job cuts and fewer hiring meant a rise in unemployment in May, marking the 15th consecutive month of rises and taking the figure to the highest since December 2020.