July 26 – Lancashire Job Market report. KPMG & REC: We have the fastest-growing candidate pool in the UK, here in the North.
We are in a state of steady confidence rather than retreat.
After five months of steady permanent hiring growth, the North of England saw a modest pullback in June.
But look past that single data point, and the region’s underlying story is still one of relative strength, with temporary and contract hiring now growing at its fastest pace in two years, and candidate availability rising faster here than anywhere else in the country.
For employers across the North, the message from the latest KPMG and REC UK Report on Jobs is one of steady confidence rather than retreat.
The UK Picture: A Long, Slow Thaw
Nationally, the labour market remained subdued in June, though the pace of decline continued to ease:
- Permanent placements fell for a 45th consecutive month, but the rate of contraction was among the weakest seen throughout that entire run — the Midlands recorded the steepest drop, London the softest.
- Temporary billings rose for a third month running UK-wide, and at the fastest pace since April 2023, with growth recorded in all four monitored English regions for the second month in a row.
- Candidate availability for permanent roles kept climbing, though growth has eased since February.
- Starting salaries picked up pace, rising at their fastest rate since January, while temp pay rates increased for the seventh month running.
The North of England: Resilience, With a Small Asterisk
Against that backdrop, the North’s June figures were a genuine standout in places — and only mildly softer in others.
| Measure | North (Jun ’26) | North (May ’26) | UK (Jun ’26) |
|---|---|---|---|
| Permanent Placements Index | 48.9 | 51.1 | 49.1 |
| Temporary Billings Index | 52.5 | 50.8 | 52.7 |
| Permanent Staff Availability | 66.7 | 67.4 | 60.2 |
| Temporary Staff Availability | 59.5 | 64.9 | 59.3 |
| Permanent Salaries Index | 54.4 | 53.3 | 53.1 |
| Temporary Wages Index | 53.3 | 49.8 | 52.9 |
(Index readings above 50 indicate growth/improvement/inflation since the previous month; below 50 indicates decline.)
A few things stand out:
Permanent placements dipped, but only slightly, and in line with the national trend. June marked the first fall in five months, attributed to fewer vacancies and slower decision-making as employers respond to wider geopolitical and economic uncertainty. This looks like a pause rather than a reversal.
Temp billings are growing at their fastest rate in two years. This is the second consecutive month of acceleration, though — worth noting — the North’s pace of growth was actually the softest of the four monitored English regions this time, even as it hit a two-year high in absolute terms.
Candidate availability in the North is the strongest story in the country. Permanent staff availability grew faster here than in any other English region for the third month running, driven largely by redundancies and restructuring elsewhere in the economy. Temp candidate availability also grew, extending a remarkable 40-month run, albeit at a slower pace than May.
Pay growth is accelerating, not slowing. Starting salaries for permanent roles rose at their fastest pace since January — the seventh straight monthly increase — with only London recording stronger salary inflation. Temp pay rates rose for the first time in four months, and the increase was slightly sharper than the UK average.
What Does This Mean for Northern Employers?
A genuinely strong talent pool. With permanent staff availability rising faster in the North than anywhere else in England, employers here have more room to be selective — and more opportunity to attract candidates who might previously have been out of reach.
Don’t read the June dip as a warning sign. The modest fall in permanent placements reflects broader caution tied to geopolitical uncertainty and the change in political leadership nationally, not a Northern-specific problem. Employers with clear hiring plans shouldn’t feel pressured to shelve them.
Temp and contract routes remain a smart hedge. With billings growth at a two-year high, many businesses are clearly using temporary staffing to manage workload and uncertainty simultaneously. A temp-to-permanent approach can offer a practical middle ground for employers wanting flexibility without giving up on long-term workforce planning.
Don’t assume pay pressure has eased. Unlike the softer wage growth narrative seen in some previous months, June’s data shows starting salaries and temp pay both accelerating in the North. Budgets built on the assumption of continued wage moderation may need revisiting, particularly for roles where competition for skilled candidates remains high.
A Note on Technology and IT
This month’s report flags Technology and Design Management roles among the skills in short supply for permanent staff in the North — a shift from some recent editions, where IT/Computing hasn’t featured prominently on either the “in demand” or “under pressure” lists. It didn’t appear among short-supply temporary roles this time.
For employers with tech hiring needs, this is a useful signal to watch rather than a dramatic shift: specialist and design-adjacent technology roles appear to be tightening slightly even as the broader vacancy picture softens. Given the volatility of this data month to month, it’s worth tracking rather than reacting to in isolation.
Looking Ahead
June’s data tells a nuanced story for the North of England: a small step back in permanent hiring, set against continued strength in temporary recruitment, the fastest-growing candidate pool in the country, and accelerating pay growth. Taken together, that’s a labour market still working in employers’ favour more often than not.
As always, one month’s figures don’t make a trend — but if the North continues to outperform on candidate supply while national permanent hiring remains subdued, employers here are well placed to strengthen their teams while other regions stay cautious.