Businesses are taking on part-time staff at the fastest pace in three years, as owners look to meet rising demand for workers without shouldering the long-term costs of permanent hires.

The part-time hiring index published by KPMG and the Recruitment and Employment Confederation (REC) rose to a three-year high of 52.7 in June, up from 52.2 in May and comfortably above the 50-point mark that separates growth from contraction.

For SME owners, the logic is familiar. Stronger economic activity is creating a need for extra hands, but after two years of rising employer National Insurance, minimum wage increases and new employment rights, few are willing to lock in fixed payroll costs that would be hard to unwind if growth stumbles again. It is a strategy smaller firms have reached for before when the outlook turned uncertain.

Neil Carberry, chief executive of the REC, said: “After a long recruitment winter, these figures show truly hopeful signs. Temporary and contract work once again leads the way, as firms react to demand without yet feeling confident enough to commit to larger-scale permanent hiring.”

There were clearer signs within the data that the labour market is picking up steam after tax rises and minimum wage increases knocked hiring appetite across the SME economy.

The permanent hiring index jumped to 49.1 in June from 44.1 in May. That still marks contraction, and the measure has now been below the 50 threshold for 45 consecutive months, but the pace of decline is the slowest in some time.

Lisa Fernihough, advisory vice-chair at KPMG UK, said: “Although permanent placements are still falling, the pace of decline is easing and back to a rate we were seeing before the Iran conflict put a pause on active recruitment for many companies.”

The backdrop remains tough. Figures from the Office for National Statistics show unemployment reached 4.9 per cent in the three months to April, up from 4.6 per cent a year earlier, while the number of vacancies has fallen to a five-year low of 707,000. As Business Matters reported in May, long-term unemployment has climbed to a decade high, with small employers warning that successive cost increases are choking off new hires.

Candidate supply, at least, remains plentiful. The index measuring full-time jobseekers dipped to 60.2 in June from 62.4, while temporary candidate availability fell to 59.3 from 61.8. Both remain well into growth territory, meaning firms that do hire face a deeper talent pool than at any point in recent years.

For owners budgeting the year ahead, separate figures from research company IDR suggest wage pressure has plateaued. Workers received an average pay rise of 3.5 per cent in the three months to May, the fifth consecutive such reading. Nearly half of settlements landed between 3 per cent and 3.99 per cent, just over a third exceeded 4 per cent, and one in ten workers secured more than 5 per cent.

That stall in pay growth matters beyond the payroll run. Economists view the labour market as a crucial factor in whether the Bank of England raises interest rates this year. While the US-Iran war has put upward pressure on inflation, continued weakness in the jobs market could persuade rate-setters to leave borrowing costs at 3.75 per cent for the rest of the year, welcome news for any small firm carrying variable-rate debt.

For now, the message from the data is one of cautious optimism: demand for staff is returning, but Britain’s employers are hiring with one hand on the exit.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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The 230,000 sq ft of newly vacant space at the Humber Enterprise Park, on the outskirts of Hull, is being marketed by Knight Frank

Fresh attempts are being made to secure a tenant for the former BAE fighter jet manufacturing facility at Brough. Property consultants Knight Frank have been instructed by the site’s proprietors, Citivale and Westcore, to promote the 230,000 sq ft of recently vacated premises at the Humber Enterprise Park, situated on Hull’s outskirts.

The practice has been commissioned to collaborate with Hull-based PHH Commercial at the 79-acre location on the Humber’s banks. Accommodation now offered at the park encompasses the 167,486 sqft, single-storey steel-framed warehouse and industrial building which previously accommodated manufacturing of components for the Hawk jet, the aircraft flown by the Red Arrows.

It has lately served as a storage and logistics centre having undergone several modest extensions to provide supplementary offices and supporting staff amenities. There is also a 63,026 sqft unit that delivers extra warehouse and production capacity and enjoys a protected yard and parking provision.

BAE retains an operation at the Brough location, though manufacturing there ceased in 2020, concluding more than a century of aircraft construction there. The plant had been employed to modernise RAF Phantom jets during the 1970s and 80s before Harrier jump jets and subsequently Hawks were constructed there.

Humber Enterprise Park was established in 2014, and the two facilities now available have lately received a multimillion-pound renovation. Other park tenants include Cablescan, Dearing Plastics, Morson Praxis, Europa Crown, Purex, and Cranswick PLC, reports Hull Live.

Iain McPhail, partner in Knight Frank’s industrial property team, commented: “This is a significant appointment for us, and we are delighted to be marketing two high-quality warehouse and manufacturing buildings at one of the region’s most successful employment parks.

“We have two units available on the estate, one of 167,486 sqft which has just been refurbished and the other of 63,026 sqft, whereby the refurbishment program is due to commence imminently. The combination of the size and spec of these units, the reputation of the Humber Enterprise Park and its location, close to the M62, M18 and the Humber ports, makes them extremely attractive propositions for occupiers.”

Paul Brustad, Citivale’s asset manager at Humber Enterprise Park, stated: “With Knight Frank’s coverage in the industrial and logistics sector throughout Yorkshire, as well as their national presence, we are pleased to appoint them as letting agents on our Humber Enterprise Park scheme. With these two units currently available, the regional market knowledge and expertise of Knight Frank will be welcomed to compliment that of our other joint letting agents PPH Commercial.”

Like this story? For more news from the commercial property scene around the regions, visit our dedicated section here for the latest news and analysis within the sector.

UK tech companies raised $15.3bn in the first half of 2026, an 84 per cent leap on the $8.3bn recorded in the second half of 2025 and enough to hold Britain’s place as the world’s third-largest tech funding market, behind only the United States and China. But the headline number hides a less comfortable truth for the average founder: the money went to fewer companies.

New figures from data intelligence platform Tracxn show total funding rounds actually fell to 490 from 543 over the same period. Investors are writing fewer, far larger cheques, and the biggest of them are landing on a handful of AI businesses.

Half-year mega rounds of $1bn or more jumped to four, up from just one in each of the two previous halves. Isomorphic Labs’ $2.1bn Series B, a $2.0bn Series C for data centre builder Nscale, which had already raised £750m last September to build Britain’s biggest AI facility, and a $1.2bn Series D for self-driving firm Wayve, fresh from winning British Business Bank backing in its robotaxi push, together accounted for roughly a third of everything raised.

There is genuine encouragement for smaller firms in the detail. Seed funding rose 128 per cent to $1.8bn, with Fuel Ventures, Y Combinator and SFC Capital the most active backers at that stage. Early stage funding grew 50 per cent to $6.9bn and late stage rose 120 per cent to $6.6bn, suggesting capital is flowing at every rung of the ladder, just to fewer names on each one.

The sector map tells founders where the appetite lies. Enterprise applications remained the largest sector at $8.7bn, up 63 per cent, but enterprise infrastructure more than doubled to $4.2bn as investors piled into the compute, cloud and data centre capacity behind AI. Life sciences funding surged 228 per cent to $3.2bn. It is a continuation of the momentum that made 2025 a record year for UK AI investment, and it confirms that investors now treat AI’s physical infrastructure as an investable category in its own right.

The exit picture is more sobering. Just two companies, General Oceans and Metatek, went public in the half, down from seven, and acquisitions fell 20 per cent to 167. Value concentrated at the top here too: BVNK’s $1.8bn sale to Mastercard, eBay’s $1.2bn purchase of Depop and Genius Sports’ $1.2bn acquisition of Legend together outweighed the remaining 164 deals combined. For owners eyeing a trade sale, the message is that buyers are still active but choosier, and the average wait is lengthening, with time from first funding to acquisition stretching to 15.5 years from 12.7.

Geography remains the ecosystem’s stubbornest feature. London took 86 per cent of all UK tech funding, $13.1bn of the total, up from 79 per cent, with Cambridge a distant second at 4 per cent. Reading and Norwich both saw funding multiply several times over, to $369m and $130m respectively, but each on the back of a single large round.

For SME founders, the takeaway is double-edged. There has rarely been more capital available at seed, and the route from first cheque to IPO has shortened to 4.2 years from 6.8 for those who make it. But the market rewards scale, AI credentials and, for now, a London postcode. Those raising outside that profile should expect a market that is booming in aggregate and demanding in person.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

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Frustrated PlayStation users are canceling their PlayStation Plus subscriptions in droves following Sony’s announcement that it will cease production of physical game discs for new titles starting in January 2028, with many reporting they are being offered significant discounts in an apparent bid to retain them as subscribers.

The backlash highlights ongoing tensions between gamers who value physical media ownership and the industry’s accelerating shift toward digital distribution. Sony’s move, announced on July 1, has sparked widespread criticism from collectors, preservationists and players concerned about long-term access to games in an all-digital future.

“As consumer preferences and the broader entertainment industry continue to shift away from physical discs to digital, physical game disc production for all new games releasing on PlayStation consoles will be discontinued starting January 2028,” Sony stated in the announcement. “Following this date, new games will be available on PlayStation Store and at retailers in digital formats only.”

The company emphasized that the change would not affect existing physical games or those releasing on disc before the 2028 cutoff. Sid Shuman, senior director of content communications at Sony Interactive Entertainment, described the decision as “a natural direction” to align with consumer trends, noting that digital sales have significantly outpaced physical ones.

Despite Sony’s framing, the announcement triggered immediate outrage across social media platforms, with users decrying the loss of tangible ownership, resale markets and preservation options. Comedians, brands and gaming communities amplified the criticism, turning the issue into a broader cultural conversation about corporate control over digital content.

In response, some players launched boycotts targeting PlayStation Plus, the company’s subscription service that provides access to online multiplayer, monthly games and other benefits. On forums like Reddit and social platforms, users shared screenshots and step-by-step guides for canceling subscriptions as a form of protest.

Many of those attempting cancellations reported encountering retention offers, including discounts of up to 50% for three months of PS Plus Extra or lower percentages for longer terms. One widely discussed example involved a user offered half off a three-month subscription after initiating cancellation.

Such retention tactics are common across subscription services when users try to leave, serving as automated tools to stem churn. They do not appear to be a targeted response engineered specifically for the disc controversy but rather standard customer retention practices amplified by the timing of the backlash.

Sony has not publicly commented on the wave of cancellations or the discount offers. The company has largely remained silent on social media in the days following the announcement, a stance that has drawn further criticism.

The controversy arrives as the broader gaming industry continues its digital transformation. Digital sales already dominate, with reports indicating that physical copies accounted for a shrinking minority of PlayStation game purchases in recent years. Similar trends are evident at competitors, though Sony’s explicit timeline has crystallized concerns for physical media advocates.

Critics argue that going fully digital raises issues around game preservation, potential delistings, reliance on always-online services and the secondary market for physical copies. Collectors worry about losing the ability to own games outright, while others point to historical examples of digital libraries becoming inaccessible due to service shutdowns.

Sony is also closing the PlayStation Store on older consoles, including PS3 and PS Vita, with phased shutdowns beginning later this year and completing by mid-2027. Previously purchased content will remain downloadable for the foreseeable future, but no new purchases will be possible after closure.

The timing of the disc announcement, coming shortly after Rockstar Games’ decision to release “Grand Theft Auto VI” without a traditional physical disc version, has fueled perceptions of an inevitable industry-wide shift. Analysts suggest future consoles like the PlayStation 6 may launch without disc drives as standard.

A Change.org petition titled “Don’t Kill the Disc” has gathered substantial signatures, reflecting organized pushback from the community. Some players are urging others to cancel PS Plus or turn off auto-renewal to send a financial signal to Sony.

Not all gamers oppose the move. Proponents highlight benefits such as lower production costs, faster access to titles, reduced environmental impact from physical manufacturing and shipping, and the convenience of digital libraries. Digital sales data supports the notion that many consumers have already embraced downloads.

Sony has clarified in communications with partners that it will continue producing discs for existing titles post-2028 upon reorders, but no new games will receive physical releases. Retailers will still sell digital codes for new titles in physical packaging.

The episode underscores the challenges console makers face in balancing innovation, profitability and customer sentiment. Subscription services like PS Plus have become vital revenue streams, making retention efforts particularly relevant amid public discontent.

Whether the protests will prompt Sony to reconsider remains uncertain. The company has historically leaned into digital strategies, investing heavily in its network and services. However, sustained subscriber losses or prolonged negative publicity could influence future decisions.

For now, the discounts serve as a temporary salve for some would-be cancelers, allowing budget-conscious players to extend their subscriptions at reduced rates. Others remain committed to the boycott, viewing any continued spending as tacit approval of the digital-only direction.

The outcome could shape how the industry navigates the final chapters of physical media. As digital infrastructure matures and consumer habits evolve, the fate of discs may ultimately rest on whether enough voices demand their preservation or if market forces render them obsolete.

The company’s shares jumped to Rs 1,217.80 apiece on the NSE on Wednesday, the highest level seen by the stock in around five months. The sharp gains over the two sessions added more than Rs 12,456 crore to the company’s market capitalisation, pulling it up to nearly Rs 78,740 crore.

Info Edge Q1 business update

Info Edge on Tuesday reported that its standalone billings stood at Rs 737 crore for the April-June quarter of the ongoing financial year 2027, marking a 14% year-on-year (YoY) increase from Rs 644.2 crore reported in the corresponding quarter of the previous financial year.

Segment wise, its recruitment solutions category recorded a nearly 18% YoY rise in billings to Rs 553 crore, while 99acres posted a 17% YoY rise to Rs 110 crore during the quarter under review. Jeevansathi and Shiksha meanwhile posted a 14% YoY rise and a 23% YoY fall in billings to Rs 40 crore and Rs 35 crore, respectively.

Also Read | Info Edge shares surge after Q1FY27 billings rise 14% YoY

Nomura on Info Edge

Nomura in its note highlighted that Naukri’s nearly 18% YoY growth in billings was much higher than its expectations of a 10% rise. This came after a 10.8%, 11% and 9.5% YoY growth in billings in Q2, Q3 and Q4, respectively, of the financial year 2026.

The 17% YoY growth in 99acres’ billings also beat Nomura’s expectation of a 14% YoY growth. The overall 14% surge in billings was higher than the international brokerage’s estimate of 10% growth.

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“Naukri billing growth in Q1 FY27 improved its trend seen in FY26 and specifically Q4 FY26. We think premium hiring (jobs in niche skills with higher pays especially in tech) with higher ARPUs and a renewed focus on consumer business (new AI-led offerings including resume maker, mock interviews and jobseeker agents) may have led to this strong growth despite a possible weakness in the Middle East market due to the ongoing conflict,” Nomura said.
Nomura maintained its ‘Buy’ rating on the shares of Info Edge with a target price of Rs 1,320 apiece, implying an upside potential of nearly 14% from the stock’s previous closing price of Rs 1,159.45 apiece on NSE.

Goldman Sachs on Info Edge

Goldman Sachs also maintained its ‘Buy’ rating on the shares of Info Edge, but increased its target price to Rs 1,400 apiece, implying an upside potential of nearly 21%.It increased FY27-29 revenue estimates by up to 3%, and net income estimates by up to 4%, ET Now reported. Goldman sees sustained mid-teens billings growth as a re-rating catalyst.

Meanwhile, Citi upgraded its rating on the stock to ‘Buy’ from ‘Sell’, and increased its target price to Rs 1,400 apiece.

Also Read | Info Edge to acquire edtech platform Coding Ninjas

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Germany’s benchmark 10-year government bond yield rose 5 basis points to 3.034%, marking its highest level since July 11. Bond yields move inversely to prices.

The move followed a sharp escalation in geopolitical tensions after the United States and Iran exchanged military strikes. According to Reuters, Iran’s Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait after Washington carried out strikes on Iran in response to attacks on tankers in the Strait of Hormuz. The U.S. also revoked a licence that had allowed Iran to export oil.

The renewed tensions sent energy prices sharply higher, with Brent crude rising around 3% to $76.50 per barrel, hovering near its highest level in two weeks.

Oil prices had retreated significantly in recent months after peaking at $126 per barrel in late April. Prices declined after the U.S. and Iran reached a framework agreement in mid-June to end their conflict, paving the way for further negotiations on sanctions and enabling energy shipments to resume through the Strait of Hormuz.

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The rebound in crude prices revived concerns over inflation, leading traders to increase expectations for additional ECB tightening. Money markets were pricing in around 31 basis points of rate hikes by the end of the year, up from approximately 25 basis points a day earlier.
Germany’s two-year government bond yield, which is particularly sensitive to changes in ECB policy expectations, also climbed 5 basis points to 2.637%, its highest level since June 22.Analysts attributed the rise in bond yields to the surge in oil prices following the U.S. decision to revoke Iran’s oil export waiver. The increase in energy costs is expected to keep short-dated government bonds under pressure as investors bring forward expectations for another ECB rate increase later this year.

The latest market moves underscore how geopolitical developments and energy prices continue to influence inflation expectations and monetary policy outlooks across the euro zone.

Agencies

Analysts attributed the rise in bond yields to the surge in oil prices following the U.S. decision to revoke Iran’s oil export waiver.