02 — Where the market is
The shortage in 2026 is clients, not candidates.
That is not our opinion, it is what the sector's own numbers say. Permanent placements across the UK industry fell by roughly a third in a single year, vacancies have now contracted for thirty-four consecutive months, and candidate supply keeps rising. For a specialist agency this inverts the old problem: there are people to place, and not enough companies to place them with.
806k → 536kUK perm placements, 2023 to 2024
34Consecutive months of falling vacancies
42%Of agencies report cashflow limiting growth
Sept 2026Perm placements rose, first time since 2022
The last of those is the one worth paying attention to. Permanent placements turned positive in August and September 2026 for the first time in four years, and London was one of the regions driving it. Agencies that have client conversations booked when a recovery starts are the ones that take share from the agencies still waiting for the phone to ring.
Sources: REC Industry Status Report (December 2025); KPMG and REC UK Report on Jobs (September 2026); ONS labour market overview (September 2026).