After a challenging few years for employers and jobseekers, there are some encouraging signs emerging from the UK recruitment market. Hiring has been cautious for a prolonged period, with businesses facing economic uncertainty and carefully considering when and where to grow their teams. However, the latest recruitment data suggests an improvement in market confidence.
The KPMG and REC survey found that permanent placements rose to 50.5 in August, moving above the 50-mark threshold for the first time since September 2022. Signalling a modest improvement in permanent hiring activity. An index above 50 indicates that more recruitment agencies reported an increase in placements than a decrease.
What is happening in the recruitment market?
The latest figures show a subtle shift in employer behaviour. While permanent hiring remains challenging the declining trend seen over recent years appears to be stabilising and demand for temporary and contract workers is continuing to grow.
Temporary recruitment has been particularly important for businesses looking for greater flexibility. Hiring temporary workers allows companies to adapt to changing workloads, support new projects and fill immediate skills gaps while avoiding a long-term commitment.
Why does this matter for employers?
For businesses that have delayed recruitment activity, improved confidence could encourage business to resume discussions about their workforce requirements. Rather than waiting until the immediate need for a position becomes urgent, employers can begin planning ahead and identifying the skills and expertise they will need to support their growing business.
The improving market could also mean greater competition for experienced candidates. The latest data shows that candidate availability continues to rise, but recruiters are still reporting demand for highly skilled and specialist workers. This means businesses may need to act quickly when they find the right person.
Temporary recruitment remains valuable
Temporary recruitment showed positive movement in August, with the survey recording a reading of 52.4 for temporary staff billings. This was the second-strongest result since April 2023, highlighting the continued importance of temporary workers within the UK labour market.
Whether it’s covering maternity leave, supporting a busy period or bringing additional resource into a project, temporary recruitment gives employers the flexibility to adapt their workforce as circumstances change.
What does this mean for candidates?
For jobseekers, an improvement in permanent hiring creates more opportunity following a period of increased competition for roles. However, candidates should still be prepared for a market where employers are rigorously assessing skills, experience and overall suitability.
Keeping your CV up to date, being open and responsive to different types of opportunities and understanding which skills are in demand can all help candidates take advantage of improving conditions.
Looking ahead
The recruitment figures are part of a wider picture of improving confidence. A separate Bank of England survey found that businesses expect to increase their headcount over the year ahead, following a period of workforce reductions.
Rather than waiting for the market to become fully competitive again businesses are considering their next hire.
At March Recruitment, we support businesses across Surrey with both temporary and permanent recruitment, while also supporting a large temporary workforce of candidates who are looking for their next opportunity. As workforce requirements change, we help businesses find the people they need and candidates find roles that are right for them.
If you’re planning your next hire or need temporary support, get in touch with our team to see how we can help.
