TEMP HIRING SURGE SHOWS EMPLOYERS WANT FLEXIBILITY BEFORE COMMITMENT

The latest KPMG and REC UK Report on Jobs shows the direction employers are taking when confidence is still cautious: temporary staffing is moving faster than permanent hiring.

The July report says temporary billings rose at the quickest rate since April 2023, while permanent placements continued to fall, although at a slower pace than before. REC's own summary says the labour market has started to stabilise, with employers continuing to prioritise flexible staffing solutions so they can complete projects and support business development without locking themselves into larger permanent commitments too early.

That is the commercial signal. Employers are not necessarily walking away from hiring. They are being more selective about how they add labour.

When demand is uncertain, the wrong permanent hire can become expensive quickly. A delayed hire can be just as damaging if work is already there, customers are waiting, or an operational gap is slowing delivery. Temporary and contract staffing sits in the middle: it gives employers access to people, capacity and skills while they test demand, clear backlogs, cover absence or move a project forward.

For recruitment teams, this is where speed and structure matter. It is not enough to send CVs. Employers need the right people, at the right point, with clear assignment terms, communication and payroll handling around the placement.

V3 Recruitment supports employers who need practical workforce options without pretending every vacancy needs the same answer. For some roles, permanent hiring is still the right move. For others, a temporary worker route gives the business room to move while conditions settle.

Why it matters

The report points to three pressure points employers should not ignore.

First, confidence is still fragile. Permanent vacancies weakened again, and permanent placements remained under pressure. That makes workforce planning harder because the business may need people before it is ready to commit to long-term headcount.

Second, candidate availability has risen, partly because redundancies and softer hiring have put more people into the market. That creates opportunity, but only for employers who can move quickly and handle selection properly.

Third, pay pressure has not disappeared. Starting salaries and wages improved in the report as employers still had to compete for sought-after skills. Flexibility does not remove the need for a sensible offer, clear expectations and quick process.

Practical take away

Employers should separate roles into three groups before opening recruitment:

roles where permanent commitment is justified now

roles where temporary or contract support can protect delivery while demand is tested

roles that should wait until the business case is clearer

That simple split stops hiring from becoming emotional or reactive. It also makes the conversation with a recruiter sharper: what problem are we solving, how quickly does the business need capacity, and what level of commitment is sensible?

If your business needs labour but does not want to overcommit too early, speak to V3 Recruitment. Call 02392 361 115 or email hello@v3recruitment.com and one of the team can talk through the best route for the role.

Sources: KPMG and REC UK Report on Jobs July 2026; REC Report on Jobs summary.