The main findings for May 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 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 are:
Market uncertainty drives quicker reduction in permanent staff hiring
In May, permanent placements declined at the fastest pace since last July 2025 amid widespread reports that companies had pulled back on permanent hiring due to low confidence around the outlook and greater cost pressures. Employers that did want additional staff often looked to more flexible solutions instead, which supported the strongest rise in temp billings for over three years.
Overall demand for staff falls at slightly quicker pace
Latest data signalled the quickest reduction in overall vacancies for three months in May. This was driven by a more pronounced drop in permanent job opportunities, as demand for temporary workers moved closer to stabilisation. Indeed, the reduction in short-term vacancies was only marginal and the weakest recorded in 22 months.
Supply of labour continues to rise rapidly
Recruitment consultancies reported a further sharp increase in the availability of candidates during May. Redundancies, fewer job opportunities and concerns over current job security all reportedly pushed up candidate numbers. Although quickening on the month, the upturn in permanent labour supply remained slower than typically seen in 2025. Temp worker availability meanwhile rose to the greatest extent in six months.
Pay growth remains tepid for both perm and temp staff
A notable improvement in candidate numbers, lower demand for staff and tighter client budgets dampened rates of pay growth in May. Starting salaries and temp wages both increased at modest rates that were slightly softer than those seen in April and well below their historical averages.
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 on 0121 585 6079.
Swindale Parks Recruitment is over 30 years old – we have lots of hiring experience to share.