The latest KPMG and REC, UK Report on Jobs shows a genuine turning point for the UK jobs market, with permanent placements increasing for the first time since September 2022.
New data from the KPMG and REC, UK Report on Jobs shows UK permanent staff placements rose in August 2026 — the first increase in almost four years. While the rise was only marginal, it marks a significant shift after the longest downturn in the survey’s history.
Temporary billings extended their winning streak to five consecutive months, growing at the second-fastest rate seen since April 2023, as businesses continued to favour flexible and contract staffing alongside a cautious return to permanent hiring.
Pay growth also picked up: starting salaries for permanent roles grew at their quickest pace since January, while temporary hourly pay rose for a ninth straight month. Recruiters cited ongoing competition for skilled and niche candidates as a key driver.
Vacancies, however, are still declining overall — this was the 34th consecutive month of falling demand for staff, though the rate of decline was the second-weakest in nearly two years. Candidate availability also continued to rise sharply, giving employers more choice as more people who have been made redundant or are facing reduced opportunities enter the job market.
In Scotland, the picture diverged from the UK trend. Permanent placements fell again in August, though at their slowest pace in three months, while temp billings declined at their sharpest rate since February 2023. Pay growth in Scotland, meanwhile, accelerated — both starting salaries and temp wages rose more steeply than in July.
Separately, the latest ONS data shows unemployment among 18-24 year-olds remains close to an 11.5-year high at 14.6%, even as overall UK employment and unemployment rates held broadly steady.
Talk to Anderson Knight about what these trends mean for your hiring plans or your next career move.
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