UK Hiring Stabilises After 45 Months of Decline, Temps Rise
The UK labour market shows signs of improvement in July 2026 as permanent staff appointments stabilise for the first time in nearly four years, while temporary worker demand increases. Starting salaries and wage growth accelerate despite broader hiring caution.
For the first time in 45 months, permanent staff appointments stabilised in July 2026, marking a turnaround in hiring trends, according to the latest KPMG and REC UK Report on Jobs. The data, compiled from around 400 UK recruitment consultancies, reveals a mixed but cautiously optimistic picture across the market.
Key Trends
- Permanent placements: Stabilised after a lengthy decline, with permanent vacancies falling at their softest rate in 22 months.
- Temporary workers: Demand increased for the first time in two years, with the pace of growth at its strongest since August 2023.
- Pay growth: Both starting salaries for new hires and temporary wages show stronger increases, reflecting competition for skilled workers.
- Regional variation: London and the Midlands recorded upturns in permanent hiring, while the South and North of England continued to decline.
What This Means for Foreigners
If you're a skilled worker considering a move to the UK, this stabilisation signals emerging opportunities, particularly in London and the Midlands, and especially in fields where wage competition is picking up. Candidates should note that employer sentiment remains cautious amid economic uncertainty, so strong qualifications and specific technical skills remain your best asset. The spike in temporary worker demand also suggests flexible work and contract positions are becoming more readily available if permanent roles don't materialise.
Sources
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