It's been a fascinating period in the recruitment market, and finally, we are seeing some encouraging signs, even against a backdrop of wider economic uncertainty. As a recruitment agency that works closely with employers and candidates every day, we've been keeping a close eye on the latest data and trends from the Recruitment and Employment Confederation (REC).

So, what's really been happening in the recruitment market? Is it a good time to hire or look for a new role? Let's walk you through it.

The Recruitment Market: A Mixed Picture but Positive Momentum

The recruitment market illustrated by black male graphics in a row, with a magnifying glass over the central one that looks different in red with a tie — According to the REC's August report, 2025, confidence in the UK economy remained slightly negative overall. However, here's the good news: confidence in hiring was slightly positive!

Whilst this is a subtle change in the recruitment market, it is nevertheless an important one. It shows that although employers are still cautious, many are feeling more optimistic about their hiring plans for the months ahead.

Here's a breakdown:

Permanent Staff Hiring Trends

Short-term permanent hiring sentiment raised 6% to net 18% over the quarter.
Medium-term permanent hiring intent raised 6% to net 20% over the quarter.
Employers in London were seeing notably higher demand

Temporary and Contract Staff

Short-term use of temporary and contract workers sentiment raised 2% to net 14% over the quarter.
Medium-term for temporary workers rose 2% to 18% over the quarter.
Private Sector sentiment was significantly higher than in the public sector.

These figures show a gradual increase in confidence and hiring intent across the board. It is a positive sign that businesses are preparing to move again, even if not all have acted yet.

September Slowdown – A Pause, Not a Problem

Interestingly, September witnessed a decline in new placements for both temporary and permanent positions across many sectors. This follows a longer-term downward trend, perhaps reiterating that while sentiment is improving, it hasn't yet translated into widespread hiring activity.

To put it plainly, employers are thinking positively about hiring, but perhaps they are still waiting for stronger economic signals before pressing go. As the REC points out, it may be a case of confidence growing faster than action. Time will tell whether those intentions turn into real opportunities. Certainly, the Autumn budget is sure to have an important part to play in how this pans out.

Is It a Good Time to Hire?

In many ways, yes. Thanks to recent government and economic changes, unemployment is, unfortunately, still relatively high. Consequently, there are currently strong pools of candidates within the recruitment market that employers can cherry-pick from.

3 male and one female candidate sitting down waiting for an interview, looking at a man in a business suit standing to their right - the recruitment market — Think about it. Employers have a broader range of talent to select from. These include skilled professionals exploring new opportunities and those ready for their next challenge. Finally, don't forget the raw talent of school leavers and university graduates; employers can mould them into key team members.

So, if your business is in a position to hire, this could be a strategic time to secure great people before competition intensifies.

Is It a Good Time to Look for a New Role?

If you are considering a career move, it might be worth keeping an eye on the horizon to watch what is happening.

While new job placements haven't picked up significantly yet, hiring intent is on the rise. Some sectors may soon start to open more roles. Whether that means new vacancies will appear in your field depends largely on your industry, but momentum is building.

That said, however, career success rarely depends on timing. The most effective job seekers combine proactivity, networking, and resilience, all qualities that open many doors in any market, no matter what the recruitment market looks like.