The KPMG and REC UK Report on Jobs for August 2026, published on 11 August, recorded temporary vacancies rising for the first time in two years, the fastest pace of growth since August 2023. Blue collar roles, the category that captures most site trades, and engineering led the increase across the sub-sectors tracked in the monthly survey of recruitment consultancies.

The same report found permanent staff appointments stabilising after 45 consecutive months of decline, and permanent vacancies falling at their softest rate in 22 months. Starting salary inflation reached a six-month high, while temporary pay growth hit a 26-month high.

Why it matters

A 45-month run of falling permanent placements is not a blip, it is most of the downturn the industry has lived through since the post-pandemic slowdown took hold. The fact that it has stabilised, rather than merely slowed, is the first genuinely positive reading in the data for some time. That construction-adjacent trades and engineering are leading the temporary vacancy recovery fits a familiar pattern: employers test demand through short-term and contract hires before committing to permanent headcount. It also lines up with separately reported figures showing UK contract awards up sharply in the second quarter, work that takes months to translate into site-level recruitment. Recruitment consultants surveyed for the report described conditions as fragile rather than buoyant, but the direction of travel, after such a long slide, is what matters here.

What it means for careers and hiring

If you are a site manager, quantity surveyor or engineer thinking about a move, expect more contract and interim roles to appear before permanent vacancies open up in volume. That is not a reason to hold off. Contract-to-permanent openings are often how firms rebuild teams after a long freeze, and getting into a business on a temporary basis can put you first in line when the permanent budget is signed off. Starting salary inflation at a six-month high also means there is more room to negotiate on a move than there has been for some time, particularly in engineering disciplines where the report shows demand outpacing supply. For directors and heads of department who have kept headcount frozen through the downturn, this is the first data point in nearly four years that makes a case for reopening it, even cautiously. Regions and disciplines will not recover evenly, so the practical move is to track your own specialism against the report each month rather than read the headline as a signal to hire broadly straight away.