Recruiters See Jobs Growth Ahead, But Skills Shortages Persist

Recruiters expect vacancy levels to rise in the months ahead but warn that access to talent remains the biggest challenge, according to the latest Labour Market Monitor from the Employment and Recruitment Federation (ERF), supported by ICON Accounting.

More than half of recruiters (55%) anticipate an increase in vacancies over the next three months, compared with just 12% forecasting a decline. While demand remains strong, confidence about candidate supply is weaker; only 39% expect the pool of qualified candidates to grow.

Hiring activity in July was largely stable. Permanent and contract roles saw little overall movement, with most firms reporting no change in vacancies or placements compared to June. Temporary hiring showed more variation, with roughly one in three firms recording growth in vacancies and placements, though about one in five reported a fall.

The Monitor findings come against a backdrop of strong national employment, with more than 2.8 million people in work and the unemployment rate steady at 4.0%.

Siobhán Kinsella, President of the ERF, said, “The July Monitor shows a steady market, not slowing. Employers are still hiring and expect more vacancies in autumn, but talent supply remains the pinch point."

"Demand is strong, it’s access to skills that continues to test the market. As Budget 2026 approaches, we need policies that support training and ease cost pressures so firms can keep delivering jobs.”

The Labour Market Monitor provides real-time insight into recruiter activity, tracking sentiment, vacancies, placements and salary trends.