The UK’s recruitment market has changed significantly over the past year. Vacancy numbers have fallen, businesses are taking longer to make hiring decisions, and many employers are understandably cautious about increasing permanent headcount.
But while recruitment activity has slowed, the need for skilled people certainly hasn’t.
Instead, employers are changing how they hire.
Recent data from the KPMG and REC Report on Jobs shows that permanent recruitment remains subdued, while temporary hiring is strengthening as organisations look for greater flexibility. At the same time, candidate availability has increased as fewer businesses recruit at the pace seen in previous years.
A Different Recruitment Market
Today’s challenge isn’t simply filling vacancies. It’s balancing growth with caution.
Many businesses still need additional resource to support projects, cover absence, respond to seasonal demand or replace leavers. However, committing to permanent headcount in an uncertain economic climate isn’t always the right decision.
According to the latest KPMG and REC labour market data, temporary billings have risen at their fastest rate since April 2023, reflecting a clear shift towards flexible staffing solutions while permanent recruitment continues to recover more slowly.
The Financial Times recently reported that employers are increasingly choosing temporary workers as a way of managing rising employment costs and ongoing economic uncertainty, allowing businesses to remain productive without taking on long-term financial commitments.
Flexibility is Becoming a Competitive Advantage
For many employers, temporary recruitment is no longer just about sickness cover or holiday leave.
It’s becoming a strategic workforce planning tool.
Experienced temporary professionals can help organisations:
- Respond quickly to increased workloads
- Deliver projects without increasing permanent headcount
- Access specialist skills at short notice
- Reduce recruitment risk during uncertain market conditions
- Scale teams up or down as business needs change
This approach enables businesses to remain agile while protecting productivity and controlling costs.
Hiring Has Slowed… But Competition Hasn’t
A common misconception is that fewer vacancies automatically make recruitment easier.
In reality, employers are still competing for experienced professionals in many sectors. While candidate availability has improved overall, skilled individuals remain selective about the organisations they choose to join, and businesses that delay decisions often risk losing strong candidates.
The latest KPMG and REC research continues to show softer hiring activity alongside increased candidate availability, creating a market that rewards employers with clear recruitment strategies and efficient hiring processes.
What Should Employers Be Doing Now?
Rather than waiting for the market to return to previous levels, successful organisations are adapting.
They’re reviewing workforce plans, building talent pipelines, making greater use of temporary recruitment where appropriate, and ensuring they have the flexibility to respond when business demand changes.
Those decisions could make the difference between maintaining momentum and falling behind competitors.
Join Our Free Employer Webinar
If you’re wondering how your organisation should respond to today’s changing recruitment market, join our upcoming free 30-minute employer webinar:
The Great Recruitment Slowdown: What Should Employers Be Doing Differently?
We’ll explore:
- Latest UK recruitment market trends
- Why hiring activity has slowed
- The rise of temporary recruitment
- Changing candidate availability
- How successful employers are adapting
Whether you’re actively recruiting, planning future growth or reviewing your workforce strategy, this webinar will provide practical, evidence-based insights that you can take back to your business immediately.
🎟️ Reserve your free place today and discover how employers across the UK are adapting to a changing recruitment market.
