The latest UK Report on Jobs highlights a changing recruitment landscape, with many employers favouring temporary workers while remaining cautious about permanent hiring.
Compiled by S&P Global on behalf of KPMG and the Recruitment and Employment Confederation (REC), the report reflects responses from around 400 UK recruitment consultancies and provides a valuable snapshot of current employment trends.
The latest findings suggest businesses continue to navigate economic uncertainty by maintaining flexibility while competing for skilled talent.
Temporary Hiring Continues to Grow
One of the standout findings from the report is the increased demand for temporary workers.
Temporary staff billings rose at the fastest rate since April 2023, as many employers looked for greater flexibility in response to ongoing economic uncertainty and rising operating costs.
For businesses managing fluctuating workloads, temporary recruitment can provide access to skills without the longer-term commitment of permanent appointments.
Permanent Recruitment Remains Cautious
Permanent hiring continued to decline during June.
However, the pace of decline slowed compared with previous months, suggesting some improvement in employer confidence.
Many organisations continue to delay permanent recruitment decisions while monitoring wider economic conditions.
Candidate Availability Is Increasing
The report also found that more candidates are available for work.
An increase in redundancies has contributed to a larger pool of job seekers, giving employers access to a broader range of applicants.
While this may ease recruitment challenges in some sectors, businesses still face competition when recruiting individuals with specialist skills.
Salaries Continue to Rise
Despite weaker overall hiring activity, starting salaries continued to increase.
Both permanent and temporary workers benefited from stronger pay growth as employers sought to attract and secure experienced candidates in competitive sectors.
For employers, this highlights the importance of balancing competitive pay with wider employee benefits and long-term workforce planning.
Which Sectors Are Seeing Growth?
The report shows that demand varies considerably between industries.
Permanent Recruitment
Demand improved in:
- Nursing, medical and care
- Engineering
The largest decline in permanent vacancies was recorded in:
- Retail
Temporary Recruitment
Temporary vacancies increased most strongly in:
- Blue-collar occupations
- Engineering
Meanwhile, temporary demand fell across several sectors, including:
- Retail
- Nursing, medical and care
- Executive and professional roles
These differences demonstrate how recruitment trends continue to vary depending on sector-specific demand.
What Does This Mean for Employers?
For many businesses, workforce planning remains a careful balancing act.
Current trends suggest employers are:
- Prioritising flexibility through temporary recruitment.
- Remaining cautious about expanding permanent teams.
- Continuing to invest in competitive salaries where specialist skills are difficult to recruit.
Understanding market conditions can help businesses make informed recruitment decisions while managing costs effectively.
Final Thoughts
The latest UK hiring data reflects a labour market that is adapting to ongoing economic uncertainty.
Temporary recruitment is providing businesses with greater flexibility, while permanent hiring remains measured.
At the same time, competition for skilled employees continues to drive salary growth in many sectors.
If you’re planning to recruit, reviewing your staffing strategy and understanding the financial implications of hiring can help ensure your business is well positioned for future growth.
We’re always happy to help you plan ahead.
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