JOB MARKET LARGELY HOLDS UP DESPITE ONGOING PRESSURES ON EMPLOYERS

Posted on 25th June 2026

The number of new and existing UK job postings held broadly steady in May 2026, according to the latest Recruitment and Employment Confederation (REC) monthly Labour Market Tracker. This highlights the resilience of the UK labour market against the backdrop of ongoing political uncertainty, legislative changes and Gulf tensions. With a US-Iran ceasefire deal on the table, firms might have more confidence to push ahead with hiring. But any acceleration in recruitment is likely to be gradual. Ongoing political uncertainty in the UK, an unwieldy Employment Rights Act and higher business and employment costs this year, are likely to limit the pace of expansion without clearer signals on where domestic growth is coming from.

It is too early to draw conclusions about summer hiring. This is because two May Bank holidays disrupt usual patterns of hiring. There was a significant increase in demand for certain roles in hospitality, agriculture and retail. But next month’s data will give a clearer picture of the scale of any seasonal pick-up.

REC Chief Membership and Innovation Officer Maxine Bligh said: “Any sign of an Iran–US agreement will ease one of the global pressures holding back hiring and investment. But domestic political uncertainty and looming employment law changes still leave many firms without the confidence they need to accelerate recruitment. We are likely to see some growth in the job market, but not at full speed, with many businesses continuing to rely on temporary staff until the outlook becomes clearer.

“The government must calm the cost pressures that are shaping every recruitment decision if it wants firms to invest in hiring. Flexibility is essential. Removing the threat of overly restrictive guaranteed hours rules would give employers far greater confidence across all sectors. Exempting agencies from these rules would help businesses manage economic uncertainty more effectively by enabling them to bring in agency workers when they need them.”

This month’s Labour Market Tracker shows that the top three occupations with an increase in job postings, when compared to April 2026, were Driving Instructors (48.7%), Dental Practitioners (42.8%), and Welfare and Housing Associate Professionals n.e.c. (33.6%). But Exam Invigilators (-47%), Nannies and Au Pairs (-43.8%), and Air Transport Operatives (-23.5%) had the largest drop in active job postings.

For more information visit www.rec.uk.com.