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Economic Buzz: UK job placement downturn eases
09-Feb-2026 14:45
UK recruiters reported a softer drop in permanent job placements in January and vacancies continued to fall at a slower pace, monthly data from S&P Global showed Monday.

There was another decline in permanent job placements in January amid reports of weak market conditions and employer concerns costs, the KPMG/REC Report on Jobs said. However, the pace of decrease eased to the weakest in 18 months.

At the same time, temp billings increased for only the second time since May 2024, though growth was marginal.

The availability of candidates continued to rise largely due to redundancies and fewer job opportunities. Nonetheless, the rate of expansion was the softest in 12 months.

Data showed improvement in pay trends for both permanent and temporary staff. Starting salaries grew at the fastest pace in nearly a year-and-a-half and temp wage growth hit the joint-highest since May 2024.

Vacancies continued to fall in January. The rate of reduction remained sharp in January despite easing to the second-slowest in the past seven months.

Demand for permanent staff contracted at a softer pace than in December but one that remained quicker than for temporary workers.

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