March Momentum Builds: Is Your Recruitment Business Ready to Capitalise?

The UK hiring market is not in full rebound mode yet, but the signals coming through in March suggest it is moving in the right direction. Confidence is steadier, hiring activity is becoming less subdued, and more employers appear willing to test the market again through flexible and interim hiring. The latest KPMG and REC report shows permanent placements falling at the weakest rate for nearly three years, while temp billings declined only modestly. (KPMG)

Lloyds’ February Business Barometer adds to that picture. Overall business confidence held at 44%, comfortably above the long-term average, with optimism in the wider economy improving and construction posting one of the strongest sector gains. (Lloyds Banking Group)

From a sector perspective, S&P Global’s latest services data points to continued expansion across the UK’s largest employment sector, while the latest construction release says optimism hit a 14-month high, linked to expected infrastructure and energy projects. That matters because both indicators tend to feed directly into future recruitment demand. (pmi.spglobal.com)

ONS labour market data adds a further note of resilience. The UK employment rate increased to 75.1% and the economic inactivity rate eased to 20.7% in November 2025 to January 2026, although the ONS says these statistics should still be treated with additional caution while they remain official statistics in development. (Office for National Statistics)

This is not a rising tide that lifts every recruitment firm equally. It is a selective market, and the firms most likely to benefit are the ones with strong BD discipline, clear sector focus, active talent pipelines, and the ability to blend human performance with smarter AI-enabled delivery.

If January was about confidence and February was about early conversion, March looks more like acceleration. The opportunity is not everywhere, and it is not guaranteed, but it is there for firms ready to move.

The market is moving. The question is whether your business is ready to move with it.

Market signals behind this view

• REC/KPMG Report on Jobs
  Permanent placements fell at the weakest rate since March 2023, demand softened at the slowest pace in nine months, and temp billings declined only modestly. (KPMG)
• Lloyds Business Barometer
  Overall business confidence held at 44% in February, with optimism in the wider economy improving and construction confidence rising strongly. (Lloyds Banking Group)
• S&P Global UK Services PMI
  Business activity continued to pick up across the UK service economy in February, supporting demand in professional services, tech, and customer-facing sectors. (pmi.spglobal.com)
• S&P Global / CIPS UK Construction PMI
  Construction firms reported improving forward sentiment, with optimism hitting a 14-month high and infrastructure and energy projects supporting confidence. (pmi.spglobal.com)
• ONS Employment in the UK: March 2026
  The UK employment rate increased to 75.1% and the economic inactivity rate eased to 20.7% in November 2025 to January 2026. (Office for National Statistics)