Recruitment Industry Trends
Following the publication of the KPMG and REC, UK Report on Jobs for April 2026, Paul Sharpe, Founder of NorthStar People, shares a summary of the key findings and what they mean for the recruitment industry as we navigate all the change post JSL regulations.
Key Findings for April 2026 UK Labour Market
Temp billings
After falling modestly in the prior two months, temp billings across the UK increased at the start of the second quarter. Although the rate of expansion was marginal, it marked the strongest uplift in two-and a-half years. Recruiters noted that some employers had taken on extra staff to assist with business development and expansion plans, with a preference for short-term staff amid prevailing economic and geopolitical uncertainty. Temp billings trends varied by region, with increases seen in the Midlands and the South of England, while declines were recorded in London and the North of England.
Temp Vacancies
Meanwhile, the downturn in temporary staff demand eased notably, with short-term vacancies falling at a modest rate that was the weakest in ten months. The latest survey indicated that vacancies fell across both the private and public sectors, albeit to varying degrees. The steepest reduction in demand was signalled for permanent workers in the public sector, while the softest decline was recorded for temporary roles in the private sector.
April survey data signaled greater demand for short term staff across the Nursing/Medical/Care and Blue Collar sectors in April. Temporary vacancies across the Engineering sector were unchanged. The steepest drop in temp job opportunities was recorded in Retail.
Staff availibility
UK recruitment consultancies signalled an increase in the number of people seeking short term jobs in April, thereby stretching the current period of growth to 38 months. The rate of expansion eased only fractionally from March's three-month high and remained sharp in the context of historical data. According to anecdotal evidence, company layoffs and fewer job opportunities pushed up candidate numbers. Data broken down by region indicated that London saw the steepest rise in temp staff availability, while the softest upturn was seen in the Midlands
A deeper insight can be seen inside KPMG and REC.
Paul Sharpe's perspective
Permanent placements
- Going Backwards Again: Permanent hiring has now fallen every single month since October 2022. That's over three and a half years of consecutive decline. April's drop was the steepest since January, driven by the conflict in Iran, rising inflation fears and low business confidence. The Midlands and South are getting hit hardest — London and the North (not Burnley!) are holding up better.
Temporary billings
- A Rare Bright Spot: Back into growth territory for the first time in three months, and the strongest uplift in two and a half years. GET IN!!!! Businesses that want to keep moving are choosing flexible resource over permanent commitment. Smart. If you're not pushing temp / contractors hard right now, why not?
Vacancies Still Falling - But Slowing
- Demand for staff has now declined for 30 consecutive months. Total UK vacancies are down to 711,000, the lowest in nearly five years. The only sector showing growth in permanent vacancies? Engineering. Hotel & Catering and Retail are the biggest casualties.
Candidates Everywhere
- Candidate availability is well above the neutral mark. Redundancies and restructuring are flooding the market with candidates. Great news for clients. More pressure on your fees if you only offer contingent recruitment.
Pay Rising, But Weakly
- Starting salaries ticked up slightly but remain well below the long-run average. Temp wages are rising for the fifth month in a row with minimum wage uplifts doing the heavy lifting. Don't expect candidates to be hanging around for low offers though, the skills shortage in Engineering, IT, Finance and Blue Collar trades is still very real.
The Big Picture
- The headline unemployment figure dropped from 5.2% to 4.9% but don't be fooled. That fall wasn't driven by people getting jobs. It was driven by people giving up looking altogether. The employment rate is barely changed. The floor is holding, but it's fragile.
Paul's view
Follow the link to benchmark your recruitment agency across the 13 key business metrics and get a FREE report.
