KPMG & REC Report on Jobs January 2026
The headline figures evidence:
- Permanent placements fall at sharpest rate since August
- Temp billings decline at quicker, but mild rate
- Starting salary inflation improves, and temp pay returns to growth
December, of course, is not a 'normal' trading month, so it's always challenging to accurately interpret the causes of the statistics.
What we do know is that the autumn budget was late in November and did nothing to dispel fears for businesses.
We therefore shouldn't be surprised if decision-makers need time to assess the impact and review budgets before moving forward with any hiring.
Indeed, I expect that the hiring freezes we saw in 2025 will continue for many firms into early 2026, until they regain the confidence needed to invest and/or experience better trading conditions.
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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