This week (18th May 2026), the Office for National Statistics published its latest UK labour market figures. We wanted to share what the data is telling us, and what it means for businesses like yours.
THE MARKET RIGHT NOW
UK job vacancies have fallen to their lowest level since 2021
Early estimates put total UK vacancies at 705,000 in February to April – down 7.1% year-on-year, with declines across 13 of 18 industry sectors. Source: ONS, Vacancies and Jobs in the UK: May 2026 (published 19 May 2026).
New job postings fell 7.7% in April alone
Data from the REC shows that the number of new job postings across the UK dropped 7.7% between March and April – a sharp single-month decline reflecting the speed at which employer confidence has shifted. Source: Staffing Industry Analysts (published 20 May 2026).
Unemployment is rising, but so is candidate availability
The UK unemployment rate stood at 5.0% in January to March 2026, up 0.5 percentage points on the year. There are now 2.5 unemployed people for every vacancy, up from 2.1 a year ago. Source: ONS, Labour Market Overview UK: May 2026 (published 19 May 2026).
Geopolitical uncertainty is the primary driver
The latest KPMG and REC UK Report on Jobs (May 2026) attributes much of the slowdown in permanent hiring to uncertainty stemming from the conflict in the Middle East, alongside rising business costs and inflationary pressures. Permanent staff appointments fell at their sharpest pace since January. Source: KPMG and REC, UK Report on Jobs (published May 2026).
BUT HERE IS THE OPPORTUNITY
While the headline numbers look challenging, the same data reveals something important for employers willing to act strategically.
Temporary billings rose in April, the strongest increase recorded in two and a half years
With permanent hiring frozen at many businesses, those turning to flexible staffing are finding they can keep operations moving without long-term financial commitments. The KPMG/REC report noted that employers are “leaning more on temporary work to move ahead with their plans in this more uncertain time.”
Engineering is the only sector recording growth in permanent hiring demand
Across all ten job categories monitored by the KPMG/REC survey, engineering was the sole sector to register an increase in demand for permanent workers in April, with blue-collar roles also seeing increased demand for temporary staff.
More candidates are available than at any point in recent years
With 2.5 unemployed people per vacancy and candidate numbers rising sharply, the volume of applicants hitting employer inboxes has never been higher. More CVs does not mean better hires, it means more time spent screening, more risk of the wrong decision, and more operational pressure on your team. That’s where a specialist recruiter earns their place. We do the filtering, the compliance checks, and the matching, so you get the right person, faster, without the distraction.
HOW CONNECT APPOINTMENTS CAN HELP
At Connect Appointments, we have been placing workers across manufacturing, logistics, driving and engineering sectors across the UK. We understand the sectors you operate in, the pressures you are facing right now, and the speed at which you sometimes need to move.
Whether you need temporary cover to navigate an uncertain few months, or want specialist support finding the right permanent hire in your sector, or want to explore a managed approach to your flexible workforce – we’re here to help.
