The main findings for March 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 March 2026 are:
Downturn in permanent placements remains marginal
The number of people placed into permanent roles across the UK fell again in March, but the rate of contraction was unchanged from February and only marginal. While market uncertainty - which was exacerbated by the war in the Middle East - and rising costs were both linked to the fall, recruiters also noted that some employers had pressed ahead with previously delayed hiring plans. At the same time, temp billings fell at a modest pace that was slower than in February.
Demand for workers deteriorates at slower pace
Although overall demand for workers continued to weaken at the end of the opening quarter of the year, the rate of reduction eased for the third straight month. Whilst solid, the latest decline in vacancies was the second-slowest seen in nearly a year-and-a-half (behind May 2025). Underlying data indicated that demand for both permanent and temporary labour fell at slightly slower rates.
Starting salaries increase at weakest rate in five months
The rate of starting salary inflation continued to ease from January's recent peak in March. Furthermore, the rate of growth was the weakest recorded in five months and only marginal. There were reports that higher candidate numbers and tighter employer budgets had dampened salary growth. Temp wage inflation was likewise marginal in March, having eased to a four-month low.
Availability of candidates rises at fastest pace in 2026 so far
UK recruitment consultancies signalled sharper increases in the availability of both permanent and temporary workers in March. Overall, the supply of labour expanded at the quickest rate in 2026 to date. There were frequent reports that redundancies and job scarcity had pushed up candidate numbers. Growth in permanent staff availability continued to outpace that seen for temporary job seekers.
Commenting on the latest survey results:
Jon Holt, Group Chief Executive of KPMG, said: “Despite the increased global uncertainly. There have been signs this year that the long-term decline in hiring may be starting to stabilise as businesses press ahead with their previously delayed recruitment plans”
Neal Carberry, REC Chief Executive, said: “The Gulf Conflict provided a headwind to hiring in March, but this did not stop the trend of stabilisation that has defined 2026 so far. The effects of a longer-run crisis are unclear, but the resilience of the jobs market last month was heartening. Permanent placements showed their weakest contraction in three years”.
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 Carl Booth – Managing Director on 0121 585 6079.
Swindale Parks Recruitment is over 30 years old – we have lots of hiring experience to share.