Britain’s employment market remains under significant pressure, with demand for workers falling for the 34th consecutive month and redundancies contributing to a growing number of people searching for new jobs.
The latest KPMG and Recruitment and Employment Confederation UK Report on Jobs provides a mixed picture for UK workers. Permanent placements have finally shown a small improvement, but vacancies continue to decline while the supply of people looking for work continues to increase.
For workers worried about redundancy or job security, the figures demonstrate the importance of understanding workplace rights, preparing for employment change and considering what support would be available if their circumstances suddenly changed.
More workers competing for available jobs
According to the REC, the number of people seeking new employment increased at its sharpest rate for three months during August.
Recruiters identified redundancies as a prominent reason for the increase, alongside fewer job opportunities and concerns about existing job security.
At the same time, overall demand for staff fell for the 34th consecutive month. Permanent vacancies continued to decline, while demand for short-term staff also fell after briefly improving during July.
Official figures from the Office for National Statistics reinforce the picture of a cooler employment market.
The ONS estimated approximately 707,000 UK vacancies during May to July 2026, down 6,000 on the previous three months and 19,000 compared with a year earlier. There were approximately 2.5 unemployed people for every vacancy during April to June 2026.
That changing balance matters.
When job vacancies become harder to find while more candidates enter the employment market, workers losing their jobs can face greater competition when trying to secure their next position.
Anyone concerned about their position can access The Workers Union’s comprehensive redundancy rights UK guide or explore the wider resources for UK workers.
Why are employers cautious about hiring?
There is unlikely to be one single explanation for Britain’s subdued recruitment environment.
The REC survey reported that economic and government policy uncertainty continued to influence recruitment decisions, while elevated borrowing costs remained another concern.
Employers have also experienced increases in employment costs.
From April 2026, the National Living Wage for workers aged 21 and above increased to £12.71 an hour. Current employer National Insurance rates and thresholds can be checked through the official GOV.UK rates and thresholds for employers.
These measures provide increased earnings protection for lower-paid workers while also adding to the employment costs businesses must consider when deciding whether to recruit.
Businesses are simultaneously preparing for further employment-law changes.
The Employment Rights Act 2025 contains significant workplace reforms, including provisions concerning guaranteed hours.
Government information explains that planned reforms for zero-hours and similar arrangements include rights to guaranteed hours reflecting hours worked during a reference period, alongside reasonable notice of shifts and payments where shifts are cancelled, rescheduled or cut short at short notice.
The detailed implementation of these measures continues to develop, making it important to distinguish between rights already in force and measures that are still being implemented.
Some positive signs are emerging
The employment picture is not entirely negative.
Permanent staff appointments increased slightly during August for the first time since September 2022, according to the REC.
Temporary billings also increased for the fifth consecutive month.
Starting salaries for permanent workers strengthened too, with recruiters reporting the quickest increase since January. Competition for highly skilled candidates and workers with specialist skills was identified as one factor behind improving starting pay.
There were substantial differences between sectors.
Permanent vacancies increased in Engineering and Accounting/Financial roles during August but declined across the other eight categories monitored by the survey. Retail and Hotel & Catering experienced particularly significant reductions.
Temporary vacancies increased across four of the ten sectors monitored, led by Blue Collar and IT & Computing.
This means workers considering changing jobs should look beyond the national headline numbers. Opportunities continue to exist, particularly where employers require specialist skills.
Redundancy becomes more significant when vacancies are falling
Losing a job is difficult under almost any circumstances. It can become considerably more challenging when alternative vacancies are declining.
Workers facing possible redundancy should therefore understand the process being followed by their employer and establish what rights and entitlements may apply.
The Workers Union provides extensive information through its redundancy rights resource, covering issues including redundancy selection, consultation, notice periods, redundancy pay, alternative employment and situations where a worker believes the process may have been unfair.
Workers can also use the main The Workers Union resources centre to find information covering employment rights, disciplinary procedures, grievances, contracts of employment, working conditions and other workplace issues.
Government information about statutory redundancy entitlement is additionally available through GOV.UK redundancy guidance.
Having access to both independent workplace guidance and official government information can help workers understand the difference between statutory minimum requirements and their individual contractual circumstances.
Consider joining a union before problems develop
A weakening employment market also raises a broader question for workers: what support would you have available if your circumstances changed unexpectedly?
Workers do not necessarily need to wait for a redundancy announcement, disciplinary process, grievance or contractual dispute before considering membership.
Indeed, periods of employment stability can provide an opportunity to examine what support would be available should something subsequently go wrong.
For workers considering their options, The Workers Union provides information about joining a union and becoming a member.
Membership provides access to practical guidance covering workplace matters including redundancy, dismissal, grievances, disciplinary situations, suspension and contractual concerns.
The decision to join is naturally an individual one. However, with vacancies declining and candidate availability increasing, workers may reasonably want to consider their position before a workplace problem occurs.
The Workers Union’s approach is centred on ensuring UK workers have access to information and practical support that helps them understand their circumstances and make informed decisions.
Workers should prepare for a changing employment market
Even workers who currently feel secure can take sensible precautions.
Keeping copies of employment contracts, payslips, important workplace correspondence and records relating to changes in duties or responsibilities can prove useful if questions subsequently arise.
Workers should also pay attention to changes taking place within their organisation.
Recruitment freezes, cancelled vacancies, reduced overtime, restructuring announcements, changes to working patterns and repeated cost-cutting exercises can sometimes indicate wider financial pressures.
None automatically means redundancies will follow, but workers should remain informed about developments affecting their employer and industry.
The Workers Union’s employment and workplace resources provide a useful starting point for understanding many of the situations workers may encounter.
What happens next matters to millions of workers
The latest employment figures require balance.
Britain’s jobs market is not simply moving in one direction. The first improvement in permanent placements since 2022 represents an encouraging development, as does continued growth in temporary billings.
Nevertheless, 34 consecutive months of declining demand for staff cannot be ignored.
The latest ONS figures also show that UK vacancies remain below their level a year ago and considerably below their pre-pandemic position.
For workers, the crucial question is whether the early improvement in recruitment develops into a sustained recovery.
A stronger employment market gives workers greater choice. It makes changing jobs easier, provides opportunities for career progression and reduces some of the risks associated with redundancy.
A weaker market does the opposite.
The Workers Union believes UK workers should remain at the heart of the discussion about Britain’s economic and employment future.
Behind every vacancy statistic is somebody looking for an opportunity. Behind every redundancy is a worker potentially facing uncertainty over their income, career and household finances.
There are tentative signs of improvement, but Britain’s workers will need those green shoots to develop into something considerably stronger.
Until then, understanding employment rights, monitoring changes within the workplace and giving consideration to joining a union before difficulties arise could prove increasingly important.
