AMAZING NEWS: for the North, with positive green shoots.
Here’s our summary of the latest Job market data provided by KPMG & REC (APR26)
Our Key Highlights
- Permanent placements increased for the second consecutive month – the first sustained growth in over 3.5 years
- Vacancies rising across both permanent and temporary roles, with momentum building from February
- Temporary billings are declining, and at a faster rate than the national average
- Candidate availability remains high, driven by redundancies and business closures
- Salary growth softening, despite increased hiring demand
- Temporary pay has declined slightly, contrasting with national trends
Our Region vs National Performance
The North of England – and by extension Lancashire – is showing early signs of recovery ahead of much of the UK.
- Permanent placements: Growth in the North contrasts with declines in most other regions, with only London also seeing increases
- Vacancy growth: The North is the only region reporting improved demand for both permanent and temporary roles
- Temporary billings: Declining faster than the national average, highlighting continued caution in short-term hiring
- Candidate supply: Growing faster than the UK average, creating a more employer-led market
- Temporary pay: Falling locally, while rising slightly across the UK, signalling regional pressure on contingent work
Your Takeaway:
Lancashire sits within a region that is outperforming nationally in hiring activity, but this growth is fragile and uneven, particularly in the temporary market.
What Stands Out in Lancashire / North
- Return of Permanent Hiring Confidence
Businesses are beginning to unlock hiring freezes and commit to long-term talent again. This reflects:
- Increased confidence in stability
- A shift toward building resilient, future-ready teams
- Greater willingness to invest in key hires rather than relying on short-term solutions
- Demand Growth Without Salary Pressure
Despite rising vacancies:
- Salary growth is only modest
- Employers are becoming more measured and disciplined in hiring decisions
This suggests a more balanced market, rather than the candidate-driven spikes seen post-COVID.
- High Talent Availability
A significant increase in available candidates is being driven by:
- Redundancies
- Company closures
- Skills mismatches
For Lancashire businesses, this means:
- Larger talent pools to access
- But also greater need for screening and quality hiring processes
While the report is sector-agnostic, the trends have clear implications for IT & Tech recruitment in Lancashire:
Opportunities
- Continued competition for skilled tech talent is still driving salary increases (even if slower)
- Increased candidate availability may ease some of the long-standing talent shortages
- Businesses are likely prioritising:
- Digital transformation
- Automation
- AI and data capabilities
Shifts in Hiring Strategy
- Move away from contract-heavy models (given declining temp billings)
- Greater focus on permanent hires in critical tech roles
- More selective hiring, prioritising high-impact positions
Challenges in Tech Hiring
- Skills mismatch remains a key issue – availability doesn’t equal suitability
- Employers may struggle to find:
- Senior / niche skillsets
- Candidates aligned with evolving tech stacks
Key Challenges Facing Businesses
- Temporary Market Weakness
- Continued decline in temp billings suggests:
- Reduced reliance on flexible workforce models
- Budget caution and cost control
- Skills Mismatch
- Increased candidate supply is not fully aligned with employer needs
- Particularly relevant in technical and specialist roles
- Economic Uncertainty
- External factors (e.g. geopolitical tensions) are creating hesitation in hiring decisions
- Businesses remain cautious despite improving indicators
- Cost Pressures
- Ongoing cost-of-living and operational pressures are:
- Limiting salary growth
- Impacting hiring budgets
- Confidence Still Fragile
- While trends are positive, growth is described as modest and balanced, not strong or aggressive
Our Closing Insight
The Lancashire job market is entering a measured recovery phase.
Businesses are:
- Moving forward with hiring
- Prioritising long-term, strategic roles
- Taking advantage of increased talent availability
However, this is not a return to a high-growth market. Instead, it is a more controlled, employer-led environment, where:
- Hiring decisions are more deliberate
- Salary inflation is contained
- Skills alignment is becoming more critical than ever
For hiring managers in Lancashire, the opportunity lies in bridging the gap between available talent and evolving business needs, particularly in IT and technology, where demand remains structurally strong despite broader market caution