The latest Recruitment and Employment Confederation (REC) Labour Market Tracker has suggested the UK job market is showing signs of improvement compared to this time last year although hiring remains uneven across sectors.
The total number of active job postings in August 2026 was close to 1.7 million which is both an increase from July 2026 and an increase year-on-year. There were 712,781 new job postings in August 2026, representing a -1.9 per cent drop from July, but a 3.6 per cent increase year-on-year.
But it is disappointing to see new job postings fall for a second consecutive month. While the decline between July and August 2026 was marginal, it nevertheless suggests a hiring market that remains fragile and has long needed a shot of confidence to encourage employers to recruit and invest.
“The labour market is showing resilience against domestic and global strains,” said Maxine Bligh, REC’s Interim Chief Executive. “But the UK deserves a flourishing jobs market that delivers growth for businesses and more opportunities for workers. The latest job figures are a clear sign for the Chancellor that the labour market is resilient but needs stimulating to really kick on. A restoration of the Employer National Insurance threshold would be a big help. And a quick win would be a pared-back and more practical approach to the guaranteed hours proposals, which in their current form is a big threat to temporary work. Businesses are looking for a clear direction of travel from the Chancellor which shows that they are being listened to when they warn against the costly burden of over regulation.
“This is not the time for government to take labour market growth for granted,” she added. “Recruiters expect the hiring market to resemble a slalom course rather than a straightforward downhill run for the rest of 2026, demanding agility and careful navigation from employers. Hiring across many sectors is stable despite the unpredictability of energy and other business costs. But the unpredictable business environment means continued volatility in a handful of important sectors to the UK economy, such as finance and retail.
“Demand for manual and mid-skilled roles remains strong, creating opportunities for people looking to enter or move within the workforce. With the UK youth unemployment rate at more than 16 per cent, today’s data shows there are opportunities available right now in retail, logistics, construction and home improvement, including roles such as large goods vehicle drivers, carpenters, joiners and plasterers.”
September’s Labour Market Tracker shows that the occupations with the highest growth in active job postings between July and August 2026 were Delivery Drivers and Couriers (91.8 per cent), Crane Drivers (42.9 per cent), and Plasterers (40.7 per cent).
Dumfries and Galloway (33.8 per cent), Milton Keynes (31.7 per cent), Westminster (28.0 per cent), Moray (19.8 per cent), and South Ayrshire (19.5 per cent) recorded the largest increases in active job postings in August 2026.
