If you have been holding off on expanding your workforce, waiting for a clearer signal from the market, the latest data from the KPMG and REC Report on Jobs for February 2026 might just give you the nudge you have been looking for. For the first time in nearly three years, permanent hiring has come close to stabilising. That does not mean the challenges have vanished overnight, but it does suggest that the prolonged contraction in the UK jobs market is beginning to ease. And for businesses in logistics, industrial, manufacturing and warehousing, that matters.
The Headlines: What the February Data Actually Shows
The KPMG and REC Report on Jobs is compiled monthly by S&P Global from responses gathered from around 400 UK recruitment consultancies. It is one of the most closely watched barometers of hiring activity across the country, and February’s findings are worth paying attention to.
Permanent staff appointments fell in February, but only marginally, recording the weakest decline since March 2023. That is a significant milestone. Meanwhile, temporary billings also fell, though only modestly, following a slight uptick at the start of 2026. Vacancies across the board continued to reduce, but again at the slowest pace recorded since last May. As Jon Holt, Group Chief Executive at KPMG, put it, the jobs market was showing its strongest signs of improvement in three years.
Pay pressures eased compared to January, with starting salaries and temporary wages both growing at slower rates. Candidate availability continued to rise sharply, picking up from January’s one-year low. More workers are actively entering the market, which means the talent pool available to your business right now is considerably wider than it has been for some time.
What Does This Mean for End Hirers in Logistics, Industrial and Manufacturing?
For businesses that rely on flexible and permanent workforces, these trends have some very real, practical implications. Here is what you need to know.
Candidate availability is your friend right now. The sharp rise in available workers, particularly on the permanent side, means that if you have been struggling to find the right people, conditions are improving in your favour. More candidates in the market means more choice, more competition among applicants, and ultimately a better chance of finding the right fit for your operation.
Wage inflation is cooling, but skills remain competitive. Pay growth has slowed from the highs seen earlier in the year, which is welcome news for businesses managing tight margins. That said, competition for skilled and experienced workers in engineering, manufacturing and driving continues to put upward pressure on rates for specialist roles. Do not expect skilled pay to flatten completely, but broader wage pressures are easing.
Engineering is a standout sector. Of all the monitored sectors in February’s report, engineering was the only one to see an improvement in demand for permanent staff. For businesses that sit within or supply into manufacturing and industrial sectors, this signals a degree of resilience and even quiet optimism. If you have been deferring hiring decisions in these areas, now may be the right moment to revisit that.
Temporary demand requires careful management. Temporary billings declined across most regions and sectors in February. The Midlands bucked this trend and actually saw growth, though at its slowest rate since August. For businesses in the West Midlands and wider region that rely on temporary labour to manage fluctuating workloads, including warehousing, distribution and FMCG operations, this is a reminder to work closely with your recruitment partner to plan flexibly and stay ahead of demand spikes rather than reacting to them.
Regional context matters. Permanent placements rose in the North of England in February, while London and the South saw falls at weaker but still solid rates. The Midlands recorded its first decline in permanent placements for three months. For Pure Staff clients operating across these regions, this reinforces the importance of a recruitment partner with genuine national reach and local understanding.
Neil Carberry, REC Chief Executive, noted that the stabilising trend seen so far in 2026 has continued, and that regions and sectors most exposed to the industrial strategy appear to be the most active. A genuine turnaround, he suggested, requires growing confidence among businesses and consumers, alongside policy action to reduce the cost of doing business.
What Should Businesses Be Doing Right Now?
The cautious optimism in this report should not be read as a green light to sit back and wait for the market to sort itself out. The REC and KPMG data also contain a word of warning: global instability and economic uncertainty could yet cause this recovery to stall. Businesses that act decisively now, rather than waiting for absolute certainty, are the ones that tend to come out ahead when conditions shift.
If you are in logistics, manufacturing or industrial production, this means reviewing your workforce planning for the months ahead. With candidate availability at healthy levels and wage pressures easing slightly, the conditions for making good hires, whether permanent or temporary, are better than they have been for some time. Waiting too long risks missing the window as confidence grows and competition for available talent picks back up.
It also means reviewing your use of temporary labour. The flexibility that a well-managed temporary workforce provides is more valuable than ever in a market where demand patterns remain unpredictable. Working with a specialist recruiter who understands your sector inside and out can be the difference between reacting too slowly to a production ramp-up and having the right people in place before you need them.
How Pure Staff Can Help
At Pure Staff, we work every day with businesses across driving, industrial, manufacturing, warehousing and FMCG who need a recruitment partner that genuinely understands the pressures they face. We are not just a supplier of workers. We are a partner in your workforce strategy, helping you navigate markets like this one with the insight, speed and flexibility your operation demands.
Whether you are looking to make your next key permanent hire, scale your temporary workforce to meet upcoming demand, get clarity on what the Finance Bill changes mean for your business, or simply have a straightforward conversation about workforce planning, our team is here.
Ready to talk workforce planning? Get in touch with the Pure Staff team today.
