Review of the UK Jobs Market – May 2026
Welcome to our Review of the UK Jobs Market for May. 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:
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- Market uncertainty drives quicker reduction in permanent staff hiring
- Overall demand for staff falls at slightly quicker pace
- Supply of labour continues to rise rapidly
- Pay growth remains tepid for both perm and temp staff
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Staff Appointments
Permanent placements decline sharply in May
May experienced a steeper reduction in permanenet staff appointments across the UK. Moreoever, the pace of decline was the sharpest since last July. According to anecdotal evidence, greater market uncertainty and lower business confidence had led employers to pause recruitment. Some also commented that great labour costs had constrained hiring budgets. However, The North of England saw an increase.
Temp billings expand at quickest pace in over three years
The latest survey pointed to a back-to-back increase in temp billings across the UK. Though modest, the rate of expansion was the best recorded since April 2023. Recruitment consultancies often commented that firmer demand for short-term staff had supported the latest rise in billings, with more flexible workforce solutions preferred in many cases due to ongoing market uncertainty.
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Vacancies
Vacancies fell at fastest rate in three months
The more pronounced drop in total demand for workers was driven by a sharper decline in permanent job vacancies. Notably, permanent roles fell at the fastest rate in four months in May. In contrast, demand for temporary staff fell at a marginal pace that was the slowest seen over the current 22-month sequence of contraction.
The latest official vacancies data published by the Office for National Statistics (ONS) indicated that the number of total job vacancies across the UK fell again in the three month to April. At 705,000, the number of job opportunities fell by 7.1% on an annual basis, and was the lowest figure recorded in exactly five years.
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Staff Availability
Steeper upturn in the availability of permanent workers
Recruitment consultancies reported a further sharp increase in the availability of candidates during May. Redundancies, fewer job opportunities and concerns over current job security all reportedly pushed up candidate numbers. Although quickening on the month, the upturn in permanent labour supply remained slower than typically seen in 2025.
Growth in temporary staff supply hits six-month high
Temp worker availability meanwhile rose to the greatest extent in six months. Fewer contract opportunities, company layoffs and a general rise in unemployment were all cited as drivers of the latest upturn.
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Pay Pressures
Permanent starters’ pay continues to rise modestly
Recruiters across the UK signalled a sustained rise in starting pay for permanent workers in April. The rate of pay growth quickened slightly on the month, but was nevertheless weak in the context of the last five years. Employers are offering higher pay due to competition for particular skills. However relatively subdued demand for staff and tighter budgets weighed on growth.
Temp wage inflation eases slightly
Average hourly rates of pay for short-term staff increased again in April. Some firms linked the rises to stronger than average increases in the national minimum and living wage rates. The rate of inflation accelerated from March’s recent low, but was mild overall and well below the historical trend.
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Source: KPMG and REC UK Report on Jobs 8th June 2026
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