KPMG report shows hiring slump easing as candidate supply rises

Hiring was still slipping at KPMG’s UK staffing gauge, but the pressure in the market was easing rather than worsening. The sharper signal for consultants, auditors and recruiters was on the supply side: candidate availability expanded at the quickest rate seen in 2026 so far, giving employers more options even as permanent hiring stayed cautious and pay growth lost momentum.

The April KPMG and REC, UK Report on Jobs showed permanent staff appointments declining only marginally for the second month in a row in March, while temp billings fell more modestly than in February. Vacancies dropped at the softest pace since May 2025, the second-slowest decline in nearly a year-and-a-half. Starting salaries rose only slightly and at the weakest rate in five months, while temp wages also increased only slightly and slipped to a four-month low.

For KPMG teams, that mix points to a labour market that is not rolling over, but is still tight in all the ways that matter inside a professional services firm. Recruiters can expect a larger pool of candidates, which can help fill roles across audit, tax and advisory. At the same time, managers trying to staff engagements or backfill leavers may find it easier to hire without having to stretch pay as aggressively as they did earlier in the year. The result is less headline wage pressure, but not a clean escape from talent shortages or workload strain.

The report linked the weak pace of permanent hiring to market uncertainty, worsened by the war in the Middle East, and to rising costs. It also said some employers moved ahead with hiring plans that had been delayed earlier. That matters for KPMG because clients are still making cautious decisions on headcount, budget and project timing, which can slow sales cycles and keep scrutiny high on utilisation and pricing across the UK business.

The April reading built on a gradual shift that had already started in earlier months. January had brought a relative improvement, with temp billings rising for only the second time since May 2024 and candidate availability increasing at the softest pace in a year. February then showed permanent hiring still subdued, but at its weakest rate of decline since March 2023. By March, the downturn in demand had eased for a third straight month.

Taken together, the trend suggests incremental stabilisation rather than a snap-back in hiring. For KPMG workers, that usually means steadier staffing conversations, slower pay acceleration and more disciplined planning around busy season, promotion cycles and client demand.