• Swindon & Wiltshire Economy
• Monday July 13 2026

Jobs: temp billings continued to climb in June

Recruitment activity across the South of England showed tentative signs of stabilisation in June, as temporary hiring strengthened and the decline in permanent placements eased, according to the latest KPMG and REC UK Report on Jobs.

The survey, compiled by S&P Global from around 150 recruitment consultancies, found temp billings rose for the third consecutive month, signalling continued reliance on short-term hiring amid ongoing uncertainty. While growth eased from May’s three-year high, it remained solid and outpaced other English regions, with recruiters citing project-based work and demand for flexible staffing.

At the same time, the downturn in permanent placements softened to its weakest level since the current contraction began in April 2023. Some employers moved ahead with previously delayed recruitment plans, although overall activity remained subdued due to low business confidence, elevated hiring costs and ongoing recruitment freezes.

Despite these signs of improvement, underlying demand for staff continued to weaken. Vacancies for both permanent and temporary roles declined again in June, with permanent demand falling at one of the sharpest rates seen since last autumn.

Meanwhile, candidate availability rose sharply. The supply of permanent workers increased substantially, driven largely by redundancies and a lack of job opportunities, while the availability of temporary staff also climbed at one of the fastest rates seen this year. In both cases, growth in candidate numbers outpaced the UK average.

The imbalance between supply and demand is now feeding through into pay. Starting salaries for permanent roles fell for the first time in eight months, albeit marginally, as employers reined in budgets. Growth in temporary pay also slowed for the second month running, with increases now at their weakest since November.

David Williams, Bristol Office Senior Partner at KPMG UK, said: “June’s figures suggest the South of England labour market is becoming more active, but not necessarily more secure. The easing in permanent placements and continued strength in temp billings point to shorter-term decisions, perhaps as they press ahead with previously delayed plans or project work. But there’s still some way to go towards broader recovery.

“What stands out is that demand remains weak beneath the surface, while candidate availability continues to rise sharply. That combination is now feeding through into pay, with starting salaries falling and temp wage growth slowing further. So, while hiring activity may be stabilising in parts of the market, workers are still facing a more competitive environment, and employers are clearly favouring flexibility over long-term commitment.”

Neil Carberry, REC Chief Executive, added: “After a long recruitment winter, these figures provide real reasons for optimism. Temporary and contract hiring continues to drive the market as employers respond to demand while taking a cautious approach to permanent recruitment. June brought a third consecutive monthly rise in temporary billings in the South of England, and the decline in permanent placements eased to its slowest rate since the downturn began in April 2023. Businesses are sending the Government a clear message.

“The potential for growth is there, but confidence will only return when firms have the certainty they need to invest, expand and hire. The private sector stands ready to play its part in delivering growth. Government must back business and work alongside employers rather than increase costs and complexity. Policies that make hiring harder risk reducing opportunities, particularly for younger people. Now is the time to create the conditions for businesses to invest, create jobs and drive the economic growth the country needs.”

Report contributor Dan Barfoot, operations manager of Wiltshire- and Bath-based recruitment agency CMD Recruitment, said: “Quarter 2 has seen a surge in companies reducing headcount whilst the temporary staff numbers has surged.

“This is a definite shift and the total number of people permanently out of work at the end of the year be the highest it has been since pre-Covid.

“With employees rights increasing, companies are evaluating the risk of employing, and so will this shift be long-term?”

Pic: Vitaly Gariev on Unsplash