The latest Recruitment & Employment Confederation (REC) and Lightcast Labour Market Tracker has found there were more than 1.4m active job postings in January 2026, a rise on the previous month.
However, active job postings in January 2026 were down 5.62 per cent on the previous January. Even though the number of new job postings was marginally up in January 2026, compared to December 2025.
The figures also recorded a solid bounce-back in January job postings in the key highly skilled sectors of IT and engineering and there was growth in finance job postings, albeit in low to mid-skill roles. This will benefit temporary workers and contractors, as well as those seeking a permanent role.
“The employer dithering on hiring that held back the labour market late last year may be starting to give way,” said REC Director of Campaigns Shazia Ejaz. “January’s modest pickup suggests vacancies have stopped falling, though they are not yet flowing as strongly as we would like. Many employers are still waiting for clearer signs of economic stability before taking the plunge on increasing their workforce.
“There is some evidence of key skills experiencing more demand. The comeback in hiring in sectors such as IT, engineering and finance mean more opportunities for contractors and temps,” she adds. “And the sizeable increase in marketing, sales and advertising directors suggests firms are investing in growth in customer demand, as does the boost in roles in HGV driving and delivery roles.”
To boost growth Ejaz suggests policymakers need to give their help to employers. Recent changes have made it increasingly costly to give people a job at a time when unemployment figures are rising. If politicians want to avoid a labour market that accepts higher unemployment, they must stop advancing policies that push it up. “Businesses are looking for more practical approaches to access funding to train staff and for practicality rather than ideology to determine how the Employment Rights Act is implemented,” she says. “Excluding agencies from proposals to offer guaranteed hours, would reduce the threat to flexible work which is a vital path out of economic inactivity for many people.”
Today’s Labour Market Tracker shows that the top three occupations with an increase in job postings in January 2026, compared to December 2025 were Driving Instructors (56.3 per cent), Head Teachers and Principles (47.2 per cent) and Food, Drink and Tobacco Process Operatives (46 per cent).
But Leisure and theme park attendants (-40.6 per cent), Train and tram drivers (-39.2 per cent), and Delivery drivers and couriers (-26.9 per cent) showed the largest decrease in roles from December 2025 to January 2026.
