Despite ongoing global uncertainty, the UK recruitment market is continuing to move into the early stages of recovery.
And May’s data may be the clearest indication yet that momentum is beginning to build beneath the surface.
This is still a cautious market. Clients remain selective. Hiring decisions are often taking longer than many recruiters would like. But the broader direction of travel is becoming increasingly positive and, importantly, we are now seeing multiple indicators beginning to align.
The most significant signal this month comes from the latest Adzuna UK Job Market Report, which shows UK vacancies rising for the second consecutive month after a prolonged period of decline.
That matters.
Because vacancies are often one of the earliest forward indicators of market confidence returning.
At the same time, the latest REC/KPMG Report on Jobs shows the recruitment slowdown continuing to ease, with permanent hiring declines softening further and temporary hiring remaining comparatively resilient.
As we have seen repeatedly in previous market cycles, temporary and contract hiring tends to lead recovery phases. Employers re-engage cautiously at first, often through project-based or flexible hiring models, before confidence gradually filters through into broader permanent recruitment activity.
The latest ManpowerGroup Employment Outlook Survey also points to a meaningful shift in sentiment, with UK hiring confidence rising sharply for Q2 2026.
Importantly, the strongest hiring intentions are increasingly being driven by mid-sized businesses, rather than large corporates.
Historically, this matters enormously for recruitment businesses. SMEs and mid-market organisations are often the first part of the economy to re-engage with hiring during recovery phases. They move faster, react earlier to improving trading conditions, and frequently create the first meaningful wave of recruitment momentum.
Overlay this with the latest Lloyds Business Barometer, which shows UK business confidence remaining resilient despite global uncertainty, and the picture becomes increasingly encouraging.
Alongside the macro data, the message from the market continues to strengthen. Across engineering, technology and construction, recruitment businesses are reporting increased bookings, more client enquiries, rising contractor demand, and greater levels of early-stage hiring discussions.
Infrastructure and energy projects are continuing to support demand across engineering and technical recruitment, while Bullhorn Market IQ data suggests recovery patterns are now becoming more visible across technology, engineering and professional services. The UK Services PMI also remains above the key growth threshold, reinforcing continued expansion across professional services and digital sectors.
This is not a boom market yet.
But it is increasingly looking like a market that has found its floor.
May’s Greenshoots reinforces an increasingly clear message: the market is no longer simply stabilising. It is beginning to recover. Confidence is returning. Vacancy activity is improving. Sector-specific momentum is emerging.
But this remains a positioning market.
The firms that move early, who rebuild BD discipline, align to growth sectors, strengthen client relationships and sharpen operational discipline, are likely to benefit first.
So the question for recruitment leaders is simple: are you preparing for the recovery, or waiting for the headlines to confirm what the market is already starting to tell us?
Market signals behind this view
- Adzuna UK Job Market Report
UK vacancies rose for the second consecutive month, making this one of the clearest greenshoot indicators seen so far in 2026. - REC/KPMG Report on Jobs
The May report shows the recruitment slowdown continuing to ease, with permanent placement declines softening and temporary demand remaining comparatively resilient. - ManpowerGroup Employment Outlook Survey
UK hiring confidence has jumped sharply for Q2 2026, with employer confidence improving across most regions and sectors. - Mid-Sized Businesses Leading Hiring Intentions
Manpower data shows mid-sized UK businesses are now driving hiring demand more strongly than larger corporates, which is often an early sign of broader recovery. - Lloyds Business Barometer
Business confidence remains resilient and above long-term averages, with firms increasingly optimistic about their own trading prospects. - Bullhorn Market IQ Hiring Trends
Hiring patterns are improving across technology, engineering and professional services, suggesting sector-specific recovery is becoming more visible. - S&P Global UK Services PMI
The UK services sector remains above the key growth threshold, supporting continued demand across professional services and digital hiring. - Infrastructure and Energy Projects Supporting Future Demand
Infrastructure and energy investment continue to underpin engineering and technical recruitment demand across the UK. - Bullhorn 2026 Industry Trends Report
Bullhorn’s latest research suggests the firms adapting fastest are already seeing stronger growth and productivity gains.
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In recruitment, improving market conditions help, but leadership is still what turns opportunity into performance.
The firms that tend to outperform are not always the ones making the most noise. More often, they are the ones with leaders who create clarity, communicate consistently, coach well, and keep standards high even when the market still feels mixed. Strong leadership builds confidence inside a business long before it shows up in the numbers.
At Talence, we believe the future belongs to recruitment leaders who can combine commercial focus with emotional intelligence. That means setting a clear direction, helping people prioritise what matters, managing performance fairly, and building a culture where consultants can do their best work.
Technology may change how recruitment is delivered, but leadership still shapes how a business grows.
That is why leadership development remains such an important part of the Talence approach. Sustainable growth rarely comes from pressure alone. It comes from confident leaders, aligned teams, and a business culture that can turn momentum into results.
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
