After almost four years of decline, the UK recruitment market is showing its first sign of recovery. But the headline hides a split: plenty of candidates overall, and a real shortage of the specialists and leaders employers need most.
What the data says
The KPMG and REC Report on Jobs for September 2026 found that permanent placements rose for the first time since September 2022, described as the first broad-based improvement in hiring for nearly four years. The rise was marginal, and overall vacancies fell for the 34th month running.
At the same time, candidate supply grew at its fastest pace in three months, driven partly by redundancies. Yet starting salaries for permanent roles rose at the quickest rate since January, because competition for skilled and niche candidates remains strong. Temporary vacancies grew in IT and computing, a sign that businesses are using interim and contract expertise to deliver projects while holding back on permanent headcount.
Sponsorship has become harder
Since 22 July 2025, the Skilled Worker route only covers degree-level roles (RQF level 6), and the general salary threshold rose from £38,700 to £41,700. Some below-degree shortage roles remain eligible until 31 December 2026. For senior technology roles this is rarely a barrier, but it does mean international hires need earlier planning and a clear sponsorship budget.
What it means for leadership hiring
More CVs, not more leaders
Rising candidate supply does not mean more proven leaders in data, AI, cloud or platform roles.
Interim is growing
Many firms are bridging gaps with interim leaders while they decide on permanent structures.
Pay pressure for niche skills
Specialists still command rising offers, even in a cautious market.
Five steps for UK employers
- 1Separate volume from scarcity. Plan differently for roles with many applicants and roles where a handful of people are right.
- 2Use interim leadership deliberately. An interim leader can stabilise a programme while you run a proper permanent search.
- 3Benchmark pay for niche skills now. Offers built on last year’s ranges are losing finalists.
- 4Plan sponsorship early. Build visa timelines and costs into the search from day one.
- 5Move quickly on proven people. Scarce candidates rarely wait for long processes.
In a market full of CVs, the real skill is recognising the few leaders who can actually deliver the brief.
Ameera Talent SolutionsKiller questions for your next UK hire
| Is this role scarce or high-volume in today’s market? | Scarce / Volume |
| Would an interim leader reduce risk while you search? | Yes / No |
| Has the salary range been benchmarked in the last 6 months? | Yes / No |
| Might this role need visa sponsorship? | Yes / No |
| How many weeks is your process from first interview to offer? | Number |
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Request a callContact usSources: KPMG and REC, UK Report on Jobs, September 2026; Morgan Lewis, UK Skilled Worker changes (July 2025); PwC, UK AI Jobs Barometer 2026.
