Despite ongoing global uncertainty, April’s data gives the clearest signal yet that the UK recruitment market is moving beyond stabilisation and into the early stages of recovery.
This is no longer just a story of ‘less bad’ numbers. We are now seeing something more meaningful: permanent hiring is stabilising, temporary markets are actively driving demand, and business confidence has rebounded sharply.
For recruitment leaders, this is a positioning market. It is the phase where activity returns quietly, momentum builds beneath the surface, and the firms that act early start to pull ahead before the wider market fully catches up.
The latest REC/KPMG Report on Jobs shows the softest decline in permanent placements in nearly two years, with vacancy reductions easing and more roles returning to market.
Crucially, temporary hiring continues to hold firm. As we have seen in previous recovery cycles, flexible hiring is often the first lever employers pull and, right now, that lever is being pulled again.
Overlay this with the latest REC Jobs Outlook, which shows employers becoming less negative about the UK economy, and you can see a clear shift in sentiment.
Perhaps the most significant signal this month comes from the Lloyds Business Barometer, where confidence has surged to 55 per cent.
At the same time, the S&P Global UK Services PMI confirms continued expansion in the UK’s largest employment sector.
Construction is also providing forward-looking signals. PMI data shows stabilisation alongside growing optimism driven by infrastructure and energy pipelines, a clear indicator of future demand across engineering, technical and trade-based recruitment.
Alongside the data, the message from the market remains consistent. Across engineering, technology and construction, recruitment businesses are reporting increased bookings, more client enquiries and a steady rise in early-stage hiring conversations.
This is not yet a surge, but it is unmistakably a shift. Projects are being restarted. Clients are re-engaging. And importantly, they are once again turning to recruiters earlier in the hiring process.
However, the market is not rising evenly. This is not a passive recovery. It is a selective opportunity.
April’s Greenshoots confirm what many of us have already been sensing: the downturn appears to have bottomed out. Confidence is rising. Hiring activity is rebuilding. Recent ONS labour market data supports that view, while continued wage growth highlights ongoing competition for skilled talent.
The firms that act now, who sharpen their commercial edge, align to the right sectors and equip their teams properly, will be the ones who convert early momentum into sustained growth through 2026.
So the question for recruitment leaders is simple: are you positioned to win, or still waiting for certainty that has already arrived?
Market signals behind this view (links in headings)
- REC/KPMG Report on Jobs
The April report shows the softest decline in permanent placements in nearly two years, with vacancy reductions easing and more roles returning to market. - Temporary hiring trend
Temporary hiring remains resilient, reinforcing the pattern typically seen in the early phase of a recruitment market recovery. - REC Jobs Outlook
Employers are becoming less negative about the UK economy, signalling a meaningful improvement in sentiment and future hiring intent. - Lloyds Business Barometer
Business confidence surged to 55 per cent, an 11-point rise that supports future hiring demand and investment decisions. - S&P Global UK Services PMI
The UK services sector continues to expand, supporting demand across professional services, technology and support roles. - S&P Global UK Construction PMI
Construction is stabilising and infrastructure-led optimism is building future hiring demand across engineering and trades. - ONS labour market data
The labour market is holding firm, providing a stable base for recovery rather than a backdrop of sharp deterioration. - Wage growth indicator
Continued pay growth points to sustained competition for skilled talent, even as the broader market rebuilds.
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Where to Start With AI Without Overcomplicating It
Most recruitment leaders are not short of AI headlines. They are short of time, clarity, and confidence about where to begin.
The real opportunity is not to try everything at once. It is to identify one area of the business where AI can remove friction, improve consistency, or free people up to do higher-value work.
At Talence, we believe the future belongs to leaders who can combine practical AI adoption with strong, emotionally intelligent leadership. The goal is not to replace judgement. The goal is to give your people better tools, better focus, and better capacity to perform at their best.
Next month, we’ll be sharing more practical insight from across the Talence world, including fresh thinking on AI, leadership, and what meaningful change in recruitment really looks like. We’ll also be spotlighting upcoming events, podcast conversations, and more tools and ideas designed to help recruitment leaders stay ahead with confidence.
Ready to take the next step? Explore the Talence podcast for practical insight, browse our blogs for fresh thinking on recruitment, leadership, and AI, follow us on LinkedIn for regular updates, and take our diagnostic to see where your business stands today and where the biggest opportunities may lie.
Warm regards;
Ian Knowlson
Director, Talence
