Online vacancies held steady in July, according to the Monster employment index.

The index shows that recruitment remained largely unchanged for a fourth consecutive month, contracting by 40% year-on-year in July.

The month saw increased hiring activity in the transport, post logistics, production, manufacturing, maintenance, repair sectors, while consulting and marketing disciplines recorded fewer opportunities.

Hugo Sellert, head of economic research, at Monster Worldwide, says: “It is encouraging that overall online job demand has stabilized and that recruiting in the goods-producing sector is picking up, but there is still little indication that hiring has resumed in the much larger service sector.

“The UK economy’s sustained contraction in the second quarter means labour market conditions will remain challenging in the foreseeable future. Competition for top talent is still fierce, however, as companies seek to attract the most qualified workers from the growing pool of unemployed workers.”