Recruitment Greenshoots February 2026

Recruitment Greenshoots: 8 Positive Signals Shaping the UK Hiring Market in February 2026
At Talence, our Greenshoots series is all about spotlighting the bright spots in recruitment, because amidst the noise, there’s plenty to celebrate. From agencies bouncing back stronger to innovative hiring models gaining traction, we’re curating stories that show progress, resilience, and smart adaptation in action. It’s our way of reminding the industry (and ourselves) that even in uncertain times, growth is happening and it’s worth paying attention to.

8 Must-Read Recruitment Wins & Trends
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Hiring Downturn Begins to Ease - Recruiter Survey
The February REC/KPMG Report on Jobs shows the downturn in UK hiring eased in January 2026, with starting salaries rising at their strongest rate since August 2024 and permanent placement declines slowing to their lowest rate in over a year.

Lloyds Business Barometer Shows Resilient Business Optimism
The latest Lloyds Business Barometer indicates UK firms remain relatively optimistic about their own prospects, supporting stable hiring intentions and continued workforce investment into early 2026.

ONS Labour Market Data Shows Vacancies Edge Higher
ONS data for late 2025 shows a small but notable increase in UK vacancies compared with the previous quarter, signalling tentative stabilisation in labour demand.

Construction PMI Indicates Early Stabilisation
The UK Construction PMI rose to its highest level since mid‑2025, reflecting a slower pace of contraction and early signs of stabilisation following greater post‑Budget clarity.

Temporary Hiring Demand Strengthens
REC/KPMG data also points to improving demand for temporary staff, as employers increasingly turn to flexible and contingent labour to meet project‑based needs.

UK Services Sector Continues to Expand
The S&P Global UK Services PMI confirms continued expansion in the UK’s largest employment sector, underpinning recruitment activity in professional, digital and customer‑facing roles.

Employers Plan Pay Increases in 2026
A February employer survey shows most UK firms planning pay rises of 3–3.5% in 2026, reflecting ongoing competition for skills and retention‑driven hiring strategies.

Construction Project Starts Show Growth
Construction industry data indicates a rise in project starts towards the end of 2025, driven by commercial and non‑residential work, supporting future hiring demand across construction and engineering roles.