The latest REC/KPMG Report on Jobs highlighted an interesting shift in the recruitment market.

While permanent placements continued to soften in May, temporary billings increased at their fastest rate in more than three years.

No single report tells the whole story, and one month’s data should always be viewed in context. However, it does offer a useful snapshot of how employers may be approaching hiring decisions in the current market.

Demand Is Still There

One of the most interesting takeaways is that demand for talent hasn’t disappeared.

Many businesses are still hiring, investing in projects and looking for specialist skills. What may be changing is how they access that talent.

For some organisations, temporary and contract hiring can provide an additional level of flexibility while market conditions remain uncertain. It allows businesses to respond to changing priorities and workloads without making longer-term commitments before they’re ready.

That doesn’t mean permanent recruitment becomes less important. Permanent hiring remains critical for many organisations. The latest figures simply suggest that flexibility continues to play an important role in workforce planning.

What It Could Mean For Recruitment Businesses

For agencies, the report feels less like a signal to change direction and more like a reminder that adaptability remains important.

Client needs are constantly evolving. In some sectors, permanent hiring may be showing signs of recovery. In others, temporary and contract demand may continue to lead the way.

The agencies best positioned to navigate these changes are often those that can support customers across different hiring models and respond as priorities shift.

The need for talent remains. The route employers take to access that talent is what appears to be evolving.

An Interesting Trend To Watch

The latest data doesn’t provide all the answers, nor should it.

What it does provide is a useful indication of where confidence, flexibility and hiring demand may be sitting today.

From our perspective, it’s an interesting trend worth watching over the coming months, particularly as businesses continue to balance growth ambitions with economic uncertainty.

What are you seeing in your market? Are clients placing a greater emphasis on temporary hiring, or are you seeing confidence return to permanent recruitment?

Source: REC/KPMG Report on Jobs, June 2026.