UK hiring shows first signs of stabilising

New data on the UK labour market indicate that conditions are beginning to stabilise after a prolonged downturn. Recruitment and Employment Confederation and KPMG figures show that the long-running decline in permanent job appointments, which had lasted 45 months, has now come to an end. This marks a break from nearly four years in which permanent hiring repeatedly weakened.

The change in direction for permanent roles is emerging alongside a shift in demand for temporary workers. Vacancies for temporary positions have risen for the first time in two years, signalling renewed interest from employers in flexible staffing options. Together, these developments suggest that the overall hiring environment is starting to improve from previously depressed levels.

The 45‑month stretch of falling permanent appointments had been a defining feature of the UK jobs market, reflecting persistent caution among employers. The latest data show that this sequence of declines has now concluded, indicating that the worst phase of weakness in permanent recruitment may be passing.

While the figures confirm only that the decline has ended, not the pace of any recovery, they represent a notable shift after almost four years of deterioration. The halt in the downturn is being interpreted as an early sign that employers are restarting or expanding their search for long-term staff as conditions become more stable.

Alongside developments in permanent hiring, temporary vacancies have registered their first increase in two years. This marks the end of a period in which demand for short-term workers had also been under pressure. The return to growth in temporary roles indicates that employers are again making use of flexible hiring to meet staffing needs.

The rise in temporary vacancies comes at a time when businesses often adjust headcount cautiously, favouring short-term contracts before committing to permanent additions. An increase in this segment of the market can therefore serve as an early signal of broader hiring momentum building across the economy.

Taken together, the end of the 45‑month decline in permanent appointments and the first rise in temporary vacancies in two years mark a turning point for UK recruitment trends. These indicators point to a jobs market that is moving away from prolonged weakness toward more balanced conditions.

While the latest data do not quantify the strength of the upturn, they show that both key components of hiring—permanent and temporary—are no longer in consistent decline. For employers, job seekers and policymakers, this shift provides some of the clearest evidence in recent years that the UK labour market may be entering a phase of gradual improvement.