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

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

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.

Source: KPMG and REC UK Report on Jobs 8th July 2026