Responding to the latest UK labour market figures, which show unemployment at 5% and vacancies falling to their lowest level since 2021, Kelly Dunn, Director of KD Recruitment, said:
“While it is encouraging to see unemployment edge down slightly in the latest quarter, we should not mistake this for a sign of a strong or settled jobs market. The more telling figure is the continued fall in vacancies, which shows that many employers remain cautious about hiring.
“That said, there are still positive signs. The market is not standing still, and businesses are still recruiting. As a recruitment business that contributes to REC labour market data, we are seeing first-hand that employer demand remains present, even if decision-making has become more careful.
“The latest REC Labour Market Tracker showed new job postings fell by 7.7% between March and April 2026 and were down 5.6% compared with April last year. However, there were still more than 1.6 million active job postings in April, with active postings 7.3% higher than a year earlier. That matters, because it shows there is still underlying demand in the labour market, and many employers continue to look for the skills and people they need to grow.
“What this reveals about the UK economy is a labour market that has lost some momentum, rather than one that has stopped. Employers are weighing up recruitment decisions more carefully because of rising costs, uncertain demand and wider global pressures, but good businesses are still planning ahead and investing in people.
“This is why confidence is so important. When businesses feel supported, they hire. When candidates feel prepared and informed, they move. The role of recruiters is crucial in that middle ground — helping employers make confident hiring decisions and helping candidates understand where opportunities still exist.
“The slight fall in unemployment is good news, and it should be welcomed. It suggests that people are still finding work and that the labour market continues to show resilience despite challenging conditions. We should not talk the market down. There are still opportunities out there across many sectors, and the employers who continue to recruit now will be well placed when confidence improves further.
“However, the fall in vacancies does mean the market is becoming more competitive. For candidates, preparation, flexibility and visibility are more important than ever. Strong CVs, clear communication and interview readiness will make a real difference. For employers, the message is equally clear: even in a softer market, good people are not easy to find. Businesses that need to recruit should not assume talent is suddenly readily available.
“At a time when hiring confidence is delicate, we also need to be careful that employment policy supports both fairness and flexibility. The REC’s warnings around the government’s guaranteed hours proposals are important. Well-intentioned reforms must not make employers more hesitant to hire, particularly in sectors that rely on seasonal demand, project-based work or flexible staffing.
“Agency work plays a vital role in the UK labour market. It provides a regulated, flexible route into employment for thousands of people, including students, carers, parents, older workers and those who need work to fit around changing circumstances. It also allows businesses to respond to fluctuating demand without immediately committing to permanent hires.
“If the proposed guaranteed hours model is introduced without enough flexibility, particularly for agency workers, there is a real risk that employers could reduce their use of temporary staff, limit hours, delay recruitment decisions or move towards less regulated ways of engaging workers. That would not improve job security. It could make access to work harder, especially for young people and those looking for entry-level opportunities.
“What the UK needs now is a labour market policy that supports both confidence and fairness. Flexibility and worker protection should not be treated as opposites. Done well, employment reform can improve standards while still giving businesses the confidence to hire. Done badly, it risks reducing opportunities at exactly the time we need to encourage more people into work.
“Our advice to employers is to stay close to the market, plan ahead and continue making recruitment decisions based on long-term workforce resilience rather than short-term caution. For candidates, it is about staying positive, being prepared and focusing on roles where they can clearly demonstrate value.
“The jobs market is still moving, but it is moving more carefully. There is still demand, there are still opportunities, and there are still employers looking for great people. Confidence, clarity and proportionate policy will be essential if we want to keep people in work and give businesses the confidence to hire.”
Further information:
The latest REC Labour Market Tracker can be found here: https://www.rec.uk.com/our-view/news/press-releases/labour-market-tracker-uk-job-postings-edge-lower-amid-easter-holiday-lull-and-gulf-headwinds-rec
The REC’s response on guaranteed hours and agency workers can be found here: https://www.rec.uk.com/our-view/news/press-releases/rec-urges-sensible-approach-ill-judged-and-inflexible-guaranteed-hours-policy-aid-job-market-recovery
About KD Recruitment
KD Recruitment is a Yorkshire-based recruitment agency founded by Kelly Dunn in 2017. The business supports employers and candidates across North and East Yorkshire, specialising in temporary, permanent and fixed-term recruitment across office-based and professional roles, including Office Support, HR, Accountancy and Finance, Sales and Marketing, IT, Purchasing, Logistics and Supply Chain.
KD Recruitment works closely with employers on recruitment strategy, job descriptions, candidate attraction, salary benchmarking, retention, talent mapping and workforce planning. The business is built on a personalised, values-led approach to recruitment, helping employers find people who not only have the right skills but are also aligned with the culture and values of the organisation.
KD Recruitment is a REC-compliant organisation and contributes to REC labour market insight, helping to provide regional intelligence and real-time recruitment data that supports employers, candidates and policy discussions across the UK labour market.
Website: https://kdrecruitment.co.uk
Email: enquiries@kdrecruitment.co.uk
Telephone: 01723 313505