The main findings for January 2026 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.
The main findings for January are:
Downturn in permanent staff hiring eases
UK recruitment companies signalled a further decline in permanent placements in January amid reports of generally weak market conditions and employer concerns over costs. That said, the pace of reduction eased to the weakest in 18 months. Some companies reportedly pressed ahead with recruitment plans as a degree of market uncertainty had lifted following the government Budget announcement. At the same time, temp billings rose for only the second time since May 2024, though growth was marginal.
Softest rise in candidate availability for a year
The supply of candidates continued to rise at the start of 2026, which was frequently linked to redundancies as well as fewer job opportunities. However, the rate of expansion was the softest seen in 12 months. This was predominantly driven by a slowdown in growth of permanent candidate numbers, though temp candidate availability also improved at a weaker pace.
Pay trends improve for both permanent and temporary staff
Competition for skills that were often in short supply reportedly added further upwards pressure on rates of starting pay in January. Notably, starting salaries increased at a solid pace that was the quickest for nearly a year-and-a-half, while temp wage inflation hit the joint-highest since May 2024.
Demand for staff declines at slower but still sharp rate
Overall vacancies across the UK continued to decrease at the start of the year. The rate of reduction remained sharp, despite easing to the second-slowest seen over the past seven months. Demand for permanent staff contracted at a slightly softer pace than in December, but remained quicker than for temporary workers
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.
Posted By: Carl Booth