LONDON (Reuters) – The number of job postings in the United Kingdom rose for the first time in seven months in January, a survey showed on Friday, suggesting the country’s jobs market might be weathering the hit from higher taxes on employers.

The Recruitment & Employment Confederation said total active job postings rose to 1.52 million, up 7.2% from a sluggish December, the first month-on-month increase since June.

While employers typically hire more staff at the start of the year, the 34.4% jump in new postings between December and January was stronger than the 27.9% rise between the same two months a year earlier.

The Bank of England is watching the labour market as it considers when to cut interest rates again. It has said an expected slowdown in hiring is likely to suppress longer-term inflation pressures.

Surveys have suggested that finance minister Rachel Reeves’ decision to increase social security contributions paid by employers from April will reduced staffing or cause redundancies. But official data last week showed stronger-than-expected hiring in late 2024.

The number of job postings reported by REC is double the 759,000 job vacancies recorded by Britain’s Office for National Statistics for January. The official data – which like the REC figures is not seasonally adjusted – shows a 1.3% rise in vacancies from a three-year low recorded in December.

“While there are tough conversations going on in boardrooms across the country, today’s report suggests it is too soon for gloom about the UK economy’s prospects overall for 2025,” REC Deputy Chief Executive Kate Shoesmith said.

“We will look closely in the coming months to see if we are looking at a broader turn,” she added.

(Writing by William Schomberg; editing by David Milliken)