Talent Trends Report - July 2026
The UK hiring market is showing its first genuinely hopeful signs in a long while. Permanent hiring is close to stabilising, temporary billings are growing at their fastest rate in over three years, and starting salaries are rising at their fastest pace since January. Our July 2026 Talent Trends Report breaks down what the latest REC/KPMG and ONS data means for employers and what to do about it.
What is happening in the UK hiring market in July 2026?
In short: the market appears to be finding its floor. The June 2026 REC/KPMG Report on Jobs shows permanent placements falling only marginally (index 49.1, the softest decline in three months), while temp billings grew at their fastest rate since April 2023 (52.7). ONS data shows vacancies at 707,000, unemployment easing to 4.9%, and 2.5 unemployed candidates per vacancy, unchanged for three consecutive quarters. Employers are still cautious, but the data points to a market stabilising rather than declining.
Why this month's data matters
Individually, each of June's movements is a footnote. Together, they look like the early mechanics of a market getting ready to recover. And recoveries reward the prepared: by the time permanent hiring is visibly growing, the best candidates are fielding multiple offers and salaries have already moved.
The July Talent Trends Report unpacks the three signals behind that conclusion, why a candidate-rich market is less comfortable than it looks, and what the organisations that hire well through a recovery do differently. It also includes a six-question hiring readiness checklist to take to your next leadership meeting.
If the checklist raises uncomfortable answers, flexible models such as Recruitment Process Outsourcing (RPO) and Embedded Talent (RaaS) are built for exactly this moment: hiring capacity that scales with demand, without adding fixed cost before the recovery is confirmed.
What's inside the July report
The hiring headlines from the June 2026 REC/KPMG Report on Jobs, in plain English
The wider picture: ONS vacancies, unemployment, employment and wage data
Why a candidate-rich market is less comfortable than it looks
What first movers do differently when hiring recovers
A six-question hiring readiness checklist for your leadership team
How to build hiring capacity without fixed cost
FAQs
Is the UK job market improving in 2026?
The latest data suggests the decline is bottoming out: permanent placements fell only marginally in June 2026 and temp billings grew at their fastest rate in over three years. The full picture, and what it means for employers, is in the July report.
Why is temporary hiring growing while permanent hiring falls?
Businesses are using contract and interim talent to keep projects moving without long-term commitment while confidence rebuilds. The report explains the pattern and why it usually shifts as a recovery takes hold.
What is a hiring readiness review?
A structured, no-obligation conversation about whether your hiring process could handle an upturn, including salary benchmarks for your critical roles. Book one via the link below.
Ready when the market is?
Book a complimentary Hiring Readiness Review and find out where you stand before hiring picks up. No commitment, no hard sell.