UK labour market shows more recovery signs in September, KPMG/REC survey shows

(Fixes 'recovery signs' typo in headline)

Oct 8 (Reuters) - Britain's labour market showed more signs of recovering last month from its protracted slowdown, with permanent staff placements rising at the fastest pace in four years, a survey of recruitment firms showed on Thursday.

The survey from accountants KPMG and the Recruitment and Employment Confederation trade body added to signs of resilience in the British economy, which grew by more than expected during the first of the year.

"For the second month in a row we are seeing the jobs market starting to flicker back to life, with businesses increasing their hiring across both permanent and temporary roles," said Jon Holt, KPMG group chief executive.

Here are the key findings from the REC/KPMG Report on Jobs:

• The index of permanent placements rose to 50.9 from 50.5 in August, the highest reading since September 2022, with readings above 50 denoting growth

• Permanent starting salaries increased but at a slower pace than in August — something that may offer tentative reassurance to Bank of England officials who are trying to gauge the extent of domestic inflation pressure

• Demand for staff contracted but at the weakest pace since August 2024, the survey showed

• Recruiters reported the highest demand for IT and computing, and engineering jobs, chiming with official economic growth data that point to a AI-related upswing in activity

• Retail and hospitality sectors showed the sharpest falls in demand

• The Report on Jobs is viewed as a leading indicator of Britain's labour market

• Some BoE interest rate-setters had thought a cooling labour market will help to prevent high inflation becoming entrenched as energy prices rise, stoked by the US-Iran war

(Reporting by Andy Bruce; editing by Suban Abdulla and David Milliken)