KPMG/REC Report: UK Permanent Hiring Recovers After Four-Year Hiatus
For the first time since September 2022, UK permanent staff appointments rose in August 2026, driven by improved market confidence, while starting salaries for permanent roles reached their fastest growth pace since January.
Permanent staff appointments across the UK rose for the first time since September 2022 in August, often linked to an improvement in market confidence and companies' efforts to expand capacity. However, uncertainty regarding the economic outlook and government policy reportedly dampened the rate of expansion, which was marginal overall.
Pay trends stayed strong in August, as recruiters reported a quicker rise in starting salaries and another solid increase in temp wages. Starting salaries for permanent workers strengthened with recruiters reporting the quickest increase since January, with competition for highly skilled candidates and workers with specialist skills identified as one factor behind improving starting pay.
Temporary staffing showed sectoral variation. Temporary staff vacancies rose across four of the ten monitored job sectors in August, led by Blue Collar and IT & Computing, while Hotel & Catering registered the sharpest drop in demand for short-term staff. Temporary billings increased for the fifth consecutive month.
For expats and skilled workers seeking UK roles, this hiring uptick—albeit modest—suggests modest opening in permanent positions after years of contraction. Focus on sectors showing strong hiring (IT, skilled trades) where wage growth is fastest, and ensure your qualifications and English language level meet current Skilled Worker visa thresholds (RQF Level 6 equivalent from July 2025, and B2 English from January 2026).
Sources
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