KPMG & REC Report on Jobs February 2026
The headline figures evidence:
- Temp billings expand slightly for the first time in three months
- Candidate availability increases at softest rate in a year
- Stronger rises in both starting salaries and temp wages
After many months of hiring freezes and indecision, we are finally seeing some businesses pressing on. Not exactly an avalanche, but a change in attitude, with businesses choosing to thrive rather than survive.
The environment in which they are doing this remains challenging, with interest rates unchanged in the last Bank of England review, above-inflation minimum wage increases due in April and the Employment Rights Bill provisions to come over the coming months.
It feels like businesses are hiring despite government policies rather than because of them. And maybe proof that the UK's SME businesses, which Clarity Appointments generally works with, are resilient.
That said, unemployment numbers are climbing. And locally, we're seeing bigger businesses sending more jobs overseas.
I feel the latter is a particularly worrying trend.
But with the cost of employing people having increased and more increases to come, it's a sensible commercial decision.
Overall, what we're seeing is a peek at positivity for the first time in probably two years. And great news for jobseekers.
We hope it continues, without being sideswiped by more interference from politicians.
Contact us now for a free, no-obligation chat. Contact Clare here.
Clare Wight is the founder and Managing Director of Clarity Appointments, an independent recruitment specialist. She served as a Regional Director for The Employment Agents Movement, supporting other independent recruiters.
She remains an active member of Recconnect (formerly Members Only), a recruitment leadership network promoting high ethical standards, collaboration, diversity, equity and inclusion.
She believes business owners are more fulfilled and higher-performing when they provide emotional and professional business support to other business owners, even those they deem to be competitors. She does this actively, whilst challenging and updating her skills and knowledge of the recruitment sector, enabling her to offer the best advice to firms looking to make their next hire.
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