Review of the UK Jobs Market – June 2026
Welcome to our Review of the UK Jobs Market for June. Each month, we share market insight on the state of the UK jobs market.
You can either read our short blog, or see our infographic.
The main findings were:
-
- temp billings growth hits highest since April 2023 and permanent placements move closer to stabalising
- Stronger growth in rates of starting pay
- Slower but still sharp increase in candidate availability…
- …as demand for workers continues to weaken
______________________________________
Staff Appointments
Decline in permanent placements eases notably in June
There was a reduction in the number of people placed in permanent jobs for the forty-fifth straight month in June. This has been attributed to fewer vacancies and cuts to recruitment budgets, which in turn reflected subdued business confidence. However, the rate of contraction eased notably since May to one of the softest since March.
Stronger rise in temp billings
Growth in temp billings across the UK quickened for the second successive month in June and was solid overall. The rate of expansion was the steepest since April 2023. Demand for temporary workers has improved, at times reflecting a preference amongst businesses for flexible staffing solutions and short-term projects.
______________________________________
Vacancies
Demand for staff falls at quickest rate since January
June signalled a sharp reduction in demand for workers. Vacancies how now fallen in each of the past 32 months, with the latest reduction the most pronounced since January. The fall in temp vacancies meanwhile remained marginal with the pace of contraction quickening only fractionally from May.
The latest official vacancies data published by the ONS pointed to a further reduction in demand for workers across the UK during the three months to May. The number of overall job opportunities fell by 4.2% on an annual basis over the latest three month period, dropping to 707,000 – which is the lowest recorded for just over 5 years.
______________________________________
Staff Availability
Slower but rapid increase in permanent labour supply
UK recruitment consultancies continued to signal an improvement in the availability of permanent candidates at the end of the second quarter. The rate of growth eased since May, and though sharp, was the softest recorded in four months. This was generally linked to redundancies and a reduction in hiring activity.
Availability of temporary workers continues to rise sharply
The supply of short-term staff across the UK rose further in June, thereby extending the current period of expansion to 40 months. Redundancies remained a prominent theme when recruiters were asked what drove the latest upturn, whilst insufficient amounts of new contract work were also cited.
______________________________________
Pay Pressures
Strongest rise in starting salaries since January
As has been the case in each month since March 2021, aveage starting salaries for permanent joiners across the UK increase in June. This was the quickest seen since January. Employers are having to raise salaries in order to attract top talent. However, growth remained slower than the average seen in 30 years.
Temp pay growth improves in June
The rate of wage inflation for short-term staff accelerated to a solid pace that was the second-fastest since May 2025. Higher rates were generally linked to a lack of suitably skilled candidates and the impact of stronger-than-usual national minimum wage increases.
______________________________________
Source: KPMG and REC UK Report on Jobs 8th July 2026
Review of the UK Jobs Market – August 2026
07 September 2026Welcome to our Review of the UK Jobs Market for August. Each month, we share market insight on the state of the UK jobs market. You can either read our short blog, or see our infographic. The main findings were: Slight increase in perm placements, while temp billings growth improves Strongest upturn in permanent starters’ […]
The Six Skills That Will Set You Apart in Facilities Management
27 August 2026A new five-year study has found that six key transferable skills will matter just as much as qualifications when it comes to getting and keeping a job over the next decade. The research, carried out by the National Foundation for Educational Research, looked at the skills employers actually value and how those needs are likely […]
Review of the UK Jobs Market – July 2026
11 August 2026Welcome to our Review of the UK Jobs Market for July. Each month, we share market insight on the state of the UK jobs market. You can either read our short blog, or see our infographic. The main findings were: Temp billings growth remains among quickest since early 2023 Stronger upturns in pay for both […]