The latest Labour Market Insight report from CV-Library has shown business hiring confidence increasing in the first three months of 2026, with the number of job vacancies advertised up 7.6 per cent compared to the same time last year.
However, following a 9 per cent increase in January and 11 per cent in February, March saw vacancy rates up just 0.8 per cent compared to prior year, suggesting that early confidence has been tempered by the impacts of the Iran war.
Any improvement in the vacancy rates will be welcome news for job seekers with the latest ONS figures show that the number of jobseekers per vacancy rose from 1.9 in Q1 2025 to 2.6 in Q1 2026 and unemployment at 5.2 per cent.
While job vacancy rates where less buoyant in March, a survey of 150 businesses by CV-Library in late March found that longer term business hiring confidence remains upbeat. 52 per cent of respondents expected to increase hiring activity in the next 6 months, compared with just 25 per cent who expected a decrease.
Job vacancies for the quarter were driven by demand for workers in Education, Hospitality and Social Care which consistently top the demand table. Construction job vacancies increased by 11 per cent with IT up 12 per cent compared to Q1 in 2025, suggesting they are sectors with strong growth potential.
“The first few months of the year suggests that the hiring handbrake was starting to be eased with business confidence returning,” said Lee Biggins, CEO and Founder of CV-Library. “But that initial optimism appears to have been tempered in March with concern about the impact of the war in Iran. That said, it’s encouraging to see positive hiring intent over the longer term and if we can ride out the global uncertainty swiftly, 2026 may yet be the turning point for a long-depressed jobs market.”
For a more detailed overview, please visit the report here: https://www.cv-library.co.uk/recruitment-insight/labour-market-insights-q1-2026/.
