Review of the UK Jobs Market – February 2026

Welcome to our Review of the UK Jobs Market for February. 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:

• • Permanent staff appointment fall at weakest rate for nearly three years
  • Demand for staff declines at softest pace in nine months
  • Rates of pay growth ease amid further increases in staff availability

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Staff Appointments

February saw a reduction in billings received from the employement of short-term staff for the third time over the last four momths. That said, the rate of contraction was modest and slower than the average seen in 2025. Uncertainty over the economic outlook and generally muted demand for staff had weighed on billings in the latest survey period.

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Vacancies

Vacancies decline at softest pace since last May

The softer fall in overall demand for workers in Fenruary was driven by a slower dcline in permanent vacancies, which decrased at the weakest pace since last May. Meanwhile, temporary worker demand fell at the steepest rate in three months.

Official vacancies data published by the Office for National Statistics (ONS) showed that the overall number of job opportunituies across the Uk was broadly unchanged in the there months to January. Vacancies role by just 2,000 compared to the prior three-month period, increasing to 726,000.

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Staff Availability

Availability of permanent workers increases at fastest pace

The number of people seeking permanent positions across the UK continued to increase in February, thereby stretching the current run of growth to exactly three years. Although the rate of expansion remained well below levels typically recorded in 2025 the upturn remained historically sharp overall. Redundancies seem to be the dominant reason for increased candidate supply, which in turn was linked to cost-cutting and an uncertain economic environment.

Supply of temp staff expands at slowest pace in over a year

As has been the case since March 2023, the supply of temporary workers across the UK increased during February. Fewer short-term job opportunities and company layoffs were reportedly behind the latest upturn in temporary candidate supply.

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Pay Pressures

February saw a sustained increase in salaries awarded to new permanent joiners in February, thereby stretching the current period of pay growth to exactly five years. Employers were willing to raise pay offers to secure sought-after skills. However the rate of inflation eased to the softest since last October and was comfortably below the survey average.

Source: KPMG and REC UK Report on Jobs 9th March 2026