The main findings for July 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 for July are:
Permanent placements stabilise and temp billings rise for fourth straight month
Permanent placements stabilised in July, following only a marginal decline in June, ending a 45-month downturn. Recruiters noted that demand for permanent staff remained subdued amid political and economic uncertainty and higher labour costs, though some employers continued with hiring plans linked to new projects. At the same time, more employers sought flexible workforce solutions, supporting a further rise in temp billings, with growth among the strongest seen in the past three years.
Temp vacancies rise for the first time in two years
Latest data pointed to a fresh rise in demand for temporary workers across the UK. Though modest, the rate of growth was the quickest seen since August 2023. At the same time, permanent vacancies fell at a slower, but still solid rate. As a result, overall demand for workers fell at the softest pace in 22 months.
Rates of pay growth improve in July
Pay trends continued to improve in July, with recruiters often commenting on a lack of suitably skilled or experienced candidates for roles. The rate of starting salary inflation was solid, having reached the highest in six months, whilst temp wage growth hit a 26-month high. However, the upturn in starting salaries remained much slower than the long-run trend amid a further steep rise in candidate availability.
Candidate numbers rise at softer but still sharp rate
The availability of candidates to fill roles continued to increase in July, stretching the current period of growth to nearly three-and-a-half years. The rate of expansion slipped to the lowest since February, but remained sharp overall. This reflected softer upturns in both permanent and temp candidate numbers, with the latter rising at the slowest pace since May 2023. The latest increases in staff supply were generally linked to redundancies and a lack of job opportunities.
Hopefully this will provide you with a useful 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 07766552676.
Swindale Parks Recruitment is over 30 years old – we have lots of hiring experience to share.