The latest REC and KPMG Report on Jobs highlights a recruitment market that is becoming more cautious, but not coming to a standstill.
Economic uncertainty, rising operating costs, and ongoing global tensions have slowed permanent hiring activity across the UK. However, the report also shows businesses are continuing to recruit where needed – particularly through temporary staffing solutions.
For employers and candidates across West Yorkshire and the wider North of England, the findings reinforce the growing importance of flexibility in workforce planning.
Key Takeaways from the REC Report
Permanent recruitment has slowed
- Permanent placements declined again in April
- Employers are delaying long-term hiring decisions
- Rising business costs and economic uncertainty remain key concerns
- Retail and hospitality reported some of the sharpest falls in hiring activity
Despite this, the North of England performed better than several other UK regions, with signs of resilience compared to parts of the Midlands and South.
Temporary recruitment is proving more resilient
One of the clearest trends in the report was the return to growth in temporary recruitment.
- Temp billings increased for the first time in three months
- Businesses are using temporary workers to maintain flexibility
- Employers continue to hire, but with shorter-term commitments
- Temporary staffing is helping firms continue projects and expansion plans while reducing risk
This is particularly relevant across West Yorkshire, where temporary recruitment remains vital in sectors such as:
- Industrial and manufacturing
- Warehousing and logistics
- Driving
- Healthcare and care
- Customer service and administration
Neil Carberry, REC Chief Executive, said employers are “leaning more on temporary work to move ahead with their plans in this more uncertain time.”
Candidate availability is increasing
The report also highlighted a continued rise in candidate availability. Key drivers include:
- Redundancies
- Reduced hiring activity
- Businesses slowing recruitment plans
For employers, this may improve access to talent after several years of skills shortages. However, recruitment challenges still remain in specialist sectors.
Areas still seeing demand
Engineering was the only sector to report stronger permanent demand in April. Meanwhile, demand for temporary workers remained stronger in:
- Nursing and healthcare
- Social care
- Blue-collar and industrial sectors
These are all key sectors across Yorkshire and the North, where employers continue to face pressure securing reliable skilled workers.
Wage growth remains steady but subdued
The report showed slight improvements in pay growth during April, although salary increases remain below historical averages.
For employers, this may help ease some cost pressures.
For candidates, it means:
- Competition for permanent roles may increase
- Salary expectations may become more realistic
- Employers offering flexibility and career development will continue to stand out
What this means for the North and West Yorkshire
The latest data suggests the market is adjusting rather than declining sharply.
Across West Yorkshire and the wider North:
- Employers are still recruiting where there is genuine demand
- Temporary staffing is becoming increasingly important
- Businesses are prioritising flexibility and resilience
- Hiring decisions are taking longer, especially for permanent roles
For recruitment businesses, this places greater emphasis on:
- Speed and responsiveness
- Strong local candidate networks
- Sector-specific expertise
- Reliable temporary workforce solutions
Looking ahead
While uncertainty remains, the REC report does show some positive signs.
- Vacancy declines are easing
- Temporary recruitment activity is improving
- The North continues to show resilience in key sectors
Jon Holt, Group Chief Executive at KPMG, said "businesses are increasingly focusing on resilience and flexibility in workforce planning – something likely to continue throughout 2026."
The overall message is clear: businesses are still hiring, but they are becoming more cautious and more flexible in how they do it.
For employers across West Yorkshire, temporary recruitment will continue to play a major role in helping organisations manage uncertainty, maintain productivity, and respond quickly to changing market demands.