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

As we move into March, the global backdrop remains complex. The ongoing conflict involving Iran has introduced a new layer of geopolitical uncertainty, with rising energy prices and inflationary pressures already beginning to ripple through the UK economy. However, underlying market fundamentals remain resilient and continue to support hiring activity.

However, while this creates short-term uncertainty, it’s important to keep perspective. History shows that these shocks tend to create volatility rather than fundamentally derail underlying economic activity-and in many cases, they accelerate investment in infrastructure, energy, and productivity-led sectors.

And that’s exactly what we are seeing in the UK recruitment market, which continues to show clear signs of stabilisation turning into momentum. While we’re not yet in full recovery mode, the indicators are increasingly aligned: confidence is returning, hiring activity is picking up, and opportunity is emerging-albeit unevenly.

The latest REC/KPMG Report on Jobs confirms that the decline in permanent hiring is continuing to ease¹.

Alongside this, temporary hiring continues to strengthen, with rising temp billings signalling that employers are actively engaging again-albeit cautiously-through flexible and project-based hiring².

The Lloyds Business Barometer shows business confidence stabilising³.

From a macro standpoint, the S&P Global UK Services PMI remains firmly above 50, confirming continued expansion in the UK’s largest employment sector⁴.

Construction and infrastructure are also beginning to turn. The latest S&P Global / CIPS UK Construction PMI highlights improving forward sentiment across the sector:

“Construction companies were hopeful of a turnaround in business activity over the year ahead, with optimism levels hitting a 14-month high in February. This was often linked to forthcoming new projects in the infrastructure and energy sectors, as well as projected improvements in broader economic conditions.”⁵

This is a critical signal for recruitment, reflecting pipeline confidence across infrastructure, energy and large-scale project work-areas that will drive demand for engineering, technical and construction talent over the coming quarters.

Beyond the data, the message from our own client base is consistent. Across engineering, technology and construction, recruitment businesses are reporting continued increases in bookings, enquiries, and early-stage hiring conversations.

This is not yet a surge-but it is a shift. Projects that were paused in 2025 are being reactivated. Employers are testing the market through contract and interim hires. And crucially, they are engaging with recruiters earlier in the hiring cycle again.

However, optimism alone will not deliver growth. This is a market that will reward the prepared.

Recruitment leaders must rebuild BD discipline, focus on the right sectors, lean into flexible hiring models, integrate AI into delivery and sales, and re-engage talent pipelines to fully capitalise on emerging demand.

March’s greenshoots reinforce a clear narrative: the market is moving again. Confidence is stabilising. Hiring activity is returning. And in key sectors, momentum is building.

But this is not a rising tide that lifts all boats. It is a selective recovery, favouring those who are commercially sharp, strategically focused, and operationally ready.

If January was about confidence, and February about conversion, then March is about acceleration.

The question for recruitment leaders now is simple: Are you positioned to capture the growth-or still waiting for certainty that may never come?

Sources

1. KPMG and REC, UK Report on Jobs March 2026 (reporting on February market): https://kpmg.com/uk/en/media/press-releases/2026/03/kpmg-rec-uk-job-report.html
2. Temporary hiring / temp billings: same source as footnote 1.
3. Lloyds Business Barometer, February 2026: https://www.lloydsbankinggroup.com/media/press-releases/2026/lloyds/february-business-barometer.html
4. S&P Global UK Services PMI: https://www.pmi.spglobal.com/Public/Home/PressRelease/c88207f7a82448649f77ab3a1e924f98
5. S&P Global / CIPS UK Construction PMI (February 2026): https://www.pmi.spglobal.com/Public/Home/PressRelease/a0b314ad70074c1aafb9eaf52e9ef6f7