Each month, we share the latest labour market trends based on the ‘UK Report on Jobs’ from KPMG and the Recruitment and Employment Confederation (REC), alongside insights from our teams across the regions.
The report is compiled by S&G Global, based on a monthly questionnaire sent to a panel of approximately 400 UK recruitment and employment agencies – including ourselves.
Key Points
Perm placements fall in April
Temp billings expand for the first time in 3 months
Availability of candidates rises
Pay growth remains modest
Permanent placements fall in April
Amid reports of increased economic uncertainty as a result of the unrest in the Middle East and rising business costs, the number of permanent placements, and general demand for staff fell in the month of April. Whilst April’s fall was sharper than seen in the preceding months, it was still softer than decline seen in 2025.
Temp billings expand for the first time in 3 months
Whilst uncertainty has led to hesitation on permanent recruitment, businesses still wanting to push ahead with growth plans have favoured short-term hiring options, leading to a marginal growth in temporary billings.
Availability of candidates rises
Redundancies and reduced hiring demand contributed to a marked increase in candidate availability, although the rate of increase was lower when compared to March’s figures.
Pay growth remains modest
Whilst starting salaries have seen growth, and April saw a stronger rate of growth than in March, this is at a lower rate than the long-run average of the survey.
Neil Carberry, REC Chief Executive, said:
“So far this year we’ve seen signs of improving momentum, but that is now being tempered by the economic effects of the Gulf conflict. Businesses will be particularly concerned about the impact on inflation, their borrowing costs and any disruption to wider supply chains. The good news is that employers are leaning more on temporary work to move ahead with their plans in this more uncertain time, demonstrating again why temporary and contract work matters so much to growth and jobs. The temporary sector showed its strongest growth in two and a half years last month. Government can do more to help firms feel able to commit to permanent hiring too, by addressing the cost of doing business – the key domestic contributor to hiring activity. Taking the threat of badly designed guaranteed hours rules off the table would make a huge difference.”
SUMMARY
As ever, these figures are representative of the overall national recruitment landscape, whereas, in reality, regional and industry variations show a more nuanced picture.
The level at which businesses are affected by the wider economic climate is individual, as is the impact of the labour market conditions. There are always considerations to be made, whether it’s a client or a candidate-driven market. Having a larger pool of candidates to choose from can be a good thing, but it can also make recruitment more time-consuming as you deal with a higher number of applications.
If you’d like to discuss your hiring plans, contact our team of expert recruiters today.