The main findings for February 2026 from the latest UK Report on Jobs, sponsored by KPMG and the REC (Recruitment & Employment Confederation), are as follows (the full 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 February are:
Permanent placements fall only slightly in February
Latest survey data indicated that permanent staff hiring decreased only marginally in February, marking the weakest decline since March 2023. While some recruiters mentioned that overall hiring conditions remained subdued, others noted a relative improvement in employers' willingness to recruit new staff. Meanwhile, temp billings declined modestly in February, following a slight increase at the start of 2026.
Vacancies decline at softest pace since last May
The number of job opportunities across the UK continued to decrease in February. However, the rate of contraction was the slowest recorded since last May, as a weaker drop in permanent vacancies offset a slightly quicker reduction in demand for temporary staff.
Softer increases in rates of starting pay
After hitting a 17-month high in January, the rate of starting salary inflation slowed in February. Notably, salaries increased at the softest pace since last October and to a degree that was well below the survey average. Temp wage inflation also weakened from the start of the year, with pay rising modestly overall. Competition for sought-after skills continued to exert upward pressure on pay, yet some recruiters reported that improved candidate supply had limited wage increases.
Further sharp rise in candidate numbers
February data signalled a rapid rise in overall candidate availability across the UK, with the rate of expansion picking up from January's one-year low. That said, the pace of increase remained slower than that seen on average over 2025. Underlying data indicated that a stronger rise in the supply of permanent workers more than offset the softest expansion in temp candidate numbers since January 2025.