Overview
- REC/KPMG data show permanent staff placements fell for a 39th straight month in December, the sharpest drop in four months, with temporary billings also declining.
- Starting salaries for permanent roles rose at the fastest pace since May, though pay growth remained below its long‑run average.
- Recruiters reported a sharp increase in candidate availability, reflecting more redundancies and fewer vacancies across key sectors.
- BDO’s optimism index fell to its weakest level since January 2021 as firms pointed to higher employment costs and regulatory changes as reasons to pause hiring.
- Policymakers face mixed signals after the Bank of England’s December cut to 3.75%, with markets expecting one or two further reductions in 2026 as labour demand weakens but wage pressures linger.