Permanent placements declined for the thirty-ninth consecutive month, with the pace of contraction accelerating in December. Panel members attributed the downturn to weak business confidence and persistent cost concerns. Temporary billings also fell for a second month, though the decline was more modest.

Demand for staff continued to soften, with vacancies for permanent roles dropping more sharply than those for temporary positions. The reduction in job opportunities, coupled with widespread reports of redundancies, led to a further substantial increase in candidate availability. Notably, permanent worker supply grew at its fastest rate in four months, while the rise in temporary candidates was the slowest since last April.

There was a glimmer of optimism on pay, as starting salary inflation reached a seven-month high, and temporary wages returned to growth after stagnating in the previous two months. However, both measures remained below their long-run averages, reflecting ongoing caution among employers.

Regionally, the Midlands stood out as the only English area to record an increase in both permanent appointments and temp billings, while London and the North and South of England saw steep declines. Sector-wise, the sharpest drop in permanent vacancies was in Secretarial/Clerical and IT & Computing, with Engineering experiencing the mildest fall. Short-term vacancies fell across most sectors, with Executive/Professional roles seeing the steepest reduction.

Neil Carberry, REC Chief Executive, said: “It’s always difficult to draw conclusions from jobs data in December, but the fact that the market slipped back a little on November is a reminder of the pressure employers are under. Nevertheless, the second half of 2025 showed some signs of a long run of negative data softening, and with placements falling at a slower pace than the 2025 average in December there is some hope that we are seeing a December dip, rather than a change in the trend.