UK Report on Jobs - December 2025

12 January 2026

The main findings for December 2025 from the latest UK Report on Jobs, sponsored by KPMG and the REC (Recruitment & Employment Confederation), are as follows (the full 10 page report is available on request – just email me at c.booth@swindaleparks.co.uk and I’ll send you a copy):

The Report on Jobs is unique in providing the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers to provide the first indication each month of labour market trends.

Staff appointments continue to fall in December

The latest KPMG/REC UK Report on Jobs survey showed another reduction in permanent staff appointments at the end of 2025, extending the current downturn to 39 months. The rate of contraction was the steepest since August, with a number of panel members linking the fall to weak business confidence and concerns around costs. Concurrently, temp billings fell for the second straight month, albeit modestly.

Demand for staff declines at slightly quicker pace

Latest vacancy data signalled another marked reduction in demand for workers at the end of the fourth quarter, with the rate of decline quickening slightly from November. This reflected a stronger fall in permanent staff vacancies, as temporary job opportunities decreased at the softest rate since last June.

Candidate availability rises sharply

Overall candidate numbers continued to expand at a substantial pace in December, with the rate of growth edging down only slightly from November. Redundancies were cited as the main driver of rising candidate supply. Divergent trends were seen by job type, as permanent worker availability increased at the quickest rate in four months, while temporary candidate numbers grew at the softest pace since last April.

Starting salary inflation hits seven-month high

The rate of starting salary inflation continued to recover from September's multi-year low, with permanent pay rising to the greatest extent since last May. However, the increase remained well below the survey's long-run trend. At the same time, temp pay increased at the end of the year after broadly stagnating over the prior two months. The marginal increase in wages was also comfortably below the historical average, however. Hopefully this will provide you with an excellent insight into a myriad of critical recruitment topics including hiring activity, candidate availability and salaries. As you strive to keep your current employees happy and attract the best new talent to help your company grow you may find some of the content very useful.

If you want to discuss any of the above or any other recruitment-related issues, then please don’t hesitate to contact me personally on 0121 585 6079 or 07766552676. Swindale Parks Recruitment is over 30 years old, we have lots of hiring experience to share.

The findings regarding Candidate availability are encouraging, so Q1 may be a good time for you to start viewing candidate’s CV’s if you have a vacancy you’re hoping to fill this year.