What’s actually happening in the jobs market right now

 

We’re halfway through 2026, and the recruitment market feels different to how it did 12 months ago. Not bad, necessarily, just more considered. So here’s a look at what we’re seeing, what the data says, and what it means if you’re hiring or job hunting in Cambridgeshire.

The market is quieter, but it’s not stalling

The UK recruitment market isn’t slowing so much as it’s maturing. Hiring is still active, but both employers and candidates are making decisions with more intention than they were a year or two ago.

The latest ONS figures, published today, put some numbers on that. Job vacancies fell to 707,000 in the March to May period, the lowest level since early 2021, with the ONS noting that firms are becoming more cautious about taking on new staff. New hires in April came in at just under 540,000, also a five-year low.

That said, around 18% of professionals are actively looking for a new role right now, and a much larger group, roughly 60%, are open to the right opportunity if it comes along. A lot of good people aren’t on the job boards, but they’re not unreachable either.

Temporary and contract hiring is on the rise

One area that’s standing out clearly is temporary and contract hiring. Employers are increasingly leaning towards flexible resourcing, and it makes sense given the economic uncertainty many businesses are navigating. Businesses still need resource and operational capacity, they’re simply becoming more cautious about how they access it.

Blue collar recruitment recorded the strongest increase in temporary vacancies in May, reinforcing the pattern we’ve seen throughout 2026 of employers prioritising operational and frontline resource. The REC has noted that temp hiring is faring better than permanent across the board right now.

If you’ve been hesitant about temp or contract roles, it might be worth reconsidering. They can be a genuinely good way to get the help you need without overcommitting when things feel uncertain.

Skills matter more than qualifications

One of the clearest shifts right now is a growing emphasis on skills over traditional credentials. Employers are increasingly placing value on what candidates can demonstrate in practice, rather than relying solely on formal qualifications.

That’s good news for candidates who’ve built up real experience outside of a traditional career path, and it’s a reminder to employers that a slightly unconventional CV shouldn’t automatically go in the no pile.

The Employment Rights Act is changing the landscape

This one matters and it’s worth knowing about. April 2026 saw significant reforms come into effect under the Employment Rights Act 2025, including day-one rights for paternity leave, parental leave, and statutory sick pay, with no qualifying service period required.

Three in four employers expect the Act to increase their employment costs, and more than half expect some increase in workplace conflict as a result of the changes. That’s not a reason to panic, but it is a reason to make sure your contracts, policies, and HR processes are up to date. If you’re not sure where you stand, it’s worth getting advice sooner rather than later.

The implementation is being phased through 2026 and into 2027, so there’s more change still to come, including a reduction in the unfair dismissal qualifying period from two years to six months from January 2027.

Salary transparency is still expected

Salary continues to be the primary motivator for career moves in 2026. Candidates expect clarity on compensation from the outset, and employers who provide it establish trust before the first interview even takes place.

We’ve said this before, but it bears repeating. Leaving salary off a job advert doesn’t protect you from negotiation, it just puts candidates off applying in the first place.

What’s happening with wages

Regular pay grew at 3.4% annually in the three months to April, which means earnings are still rising slightly faster than prices. That said, private sector wage growth is at its lowest rate in five and a half years, and economists expect it to slow further. For employers, that may ease some of the salary pressure of the past couple of years. For candidates, it’s a reason to weigh up opportunities carefully rather than holding out for significant pay increases.

Hiring timelines have steadied

Hiring processes have stabilised, with most employers taking around eight weeks from role approval to offer. Candidates, meanwhile, typically secure new positions within five weeks of actively looking. The gap between those two figures is where opportunities get lost. Move too slowly, and the person you wanted has already accepted something else.

Candidates are harder to reach right now

Job postings and placements were both up 2% in May, suggesting employers are still actively recruiting. But applications dropped by 13% compared to April, meaning there are fewer candidates per vacancy than there were just a month ago. The ONS data also shows some workers are moving into self-employment as vacancies fall, which may partly explain why candidate volumes are shifting in some sectors.

If you’re hiring and wondering why you’re not getting the volume of applications you expected, that’s likely why. It’s not you, it’s the market. And it’s another reason why working with a recruiter who already has candidate relationships makes a difference.

What does this mean locally?

The national picture broadly reflects what we’re seeing in Cambridgeshire. Employers are hiring, but more carefully. Candidates are moving, but only for the right reasons. It’s a market that rewards being clear about what you’re offering and who you’re looking for.

If you’re hiring and want a straight conversation about the current market, give us a call on 01353 886252 or take a look at what we’re up to at www.xpertresourcing.co.uk.

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Sources

• Number of job vacancies hits five-year low — BBC News, 18 June 2026
• UK Recruitment Market Snapshot, June 2026 — The Global Recruiter
• June 2026 Recruitment Trends Snapshot — Wave Recruitment
• UK Job Market Report, June 2026 — Prism Executive Recruitment
• UK Recruitment Market Snapshot, May 2026 — UK Recruiter
• The UK Recruitment Landscape in 2026: A Year of Clarity and Connection — Glen Callum Associates
• UK Recruitment Trends 2026: What Employers Need To Know — ABL Recruitment
• UK Employment Rights Act 2025: April 2026 Changes — Akin Gump
• Labour Market Outlook, Winter 25/26 — CIPD
• UK Employment Flash, March 2026 — Skadden