2026 Market Volatility: How Agencies Should Respond
In early 2026, the labour market can be best described as uneven. Vacancies appear to be stabilising after a long decline. Unemployment is higher than it was a year ago. Payroll employment is falling. Yet demand hasn’t disappeared. There are still pocket’s of growth, and clear opportunities for agencies that can adapt at pace. This guide selects the most useful labour market indications and translates them into practical operating decisions, using data from ONS reports & the KPMG/REC report on jobs.
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- Vacancies are down 8.6% year on year, but temp billings are rising. Find out why and what it means for your pipeline.
- There are 2.5 unemployed people per vacancy, up from 1.9 a year ago. More available workers sounds good, until you see where the real scarcity has shifted.
- Payrolled employment is falling. Clients are pausing permanent hires and turning to temp. Here’s how to capitalise on that before your competitors do.
- Sector breakdowns across logistics, healthcare, education and industrial.
- The five metrics separating high performing temp agencies in 2026, and how to move them.
