Talent Trends Report - February 2026
Hiring is shifting again - but it’s not a rebound. It’s a re-balance.
The start of 2026 is showing a behaviour change. Many employers aren’t rushing back into full-scale permanent hiring just yet, but they are starting to move again, selectively and with clearer intent.
The latest REC/KPMG data for January captures that shift: the downturn in permanent hiring is easing to its softest pace in 18 months, while temporary billings have returned to (marginal) growth, suggesting organisations are restarting delivery through flexible resourcing before committing to longer-term headcount.
At the same time, pay pressure is reappearing where skills are genuinely scarce, and overall demand is still declining - just less sharply than before.
“The ‘wait-and-see’ period seems to be ending….”
What’s inside the February Talent Trends Report
What the latest REC/KPMG indicators tell us about perm vs contract movement (and why “flex-first” is back)
Where hiring is stabilising and why that doesn’t equal a broad rebound
Why candidate availability can rise while skills shortages still bite in specialist areas
What improving pay trends mean for offer strategy and hiring speed
Two practical tools for leaders:
a Signals Dashboard (what to watch over the next 4–8 weeks)
a Decision Matrix to choose the right route role-by-role in a trade-off market
This report is designed for business leaders, HR teams and hiring managers who want clarity, not noise and practical insight they can act on.
About the report
The February Talent Trends Report combines REC/KPMG market intelligence with Vermelo’s experience delivering embedded talent, MSP and advisory support across specialist and regulated hiring environments.
Key themes from this month’s data:
the permanent hiring downturn is easing
contract hiring is moving first
and skills scarcity + pay pressure remain concentrated in specialist areas
Want to discuss what this means for your hiring plans?
A quick discovery can help diagnose what’s really slowing hiring down and where pressure is likely to show up next.
In a short 30-minute Discovery Session with a Vermelo talent services consultant, we’ll work with you to:
clarify hiring priorities and critical timelines
identify where scarcity and pay pressure are likely to hit hardest
highlight any compliance or governance gaps that could create risk
outline discovery outputs and next-step actions (no obligation)
Contact Santa Benga – Santa.Benga@VermeloRPO.com | 07304 094171 or book a short strategy call.