The wider UK labour market is cooling, and that makes financial services stand out. Early estimates for April to June 2026 point to a decrease of 7,000 (0.9%) vacancies to 712,000, compared with January to March 2026, with vacancies falling in 10 of the 18 sectors ONS - Vacancies and jobs in the UK. The slide continued through the summer, with early estimates for May to July 2026 suggesting a further decrease of 6,000 (0.8%) vacancies to 707,000 across the UK compared with February to April 2026 ONS - Vacancies and jobs in the UK, August 2026.
The backdrop is what the Low Pay Commission calls a 'low hire, low fire' market, with weaker recruitment but only slight increases in redundancies, and vacancies that have dropped below pre-pandemic levels Low Pay Commission Report 2025, GOV.UK. So the question for finance and insurance employers isn't whether hiring is harder across the board. It's where the demand still sits, and how to compete for it.
Demand in financial services concentrates at the skilled, qualified end. In the sector, recruitment was generally for Regulatory Qualification Framework (RQF) 6+ roles, rather than RQF 3-5 GOV.UK - Temporary Shortage List: Stage 2 report. In plain terms, that means degree-level and professional roles: the people who carry regulatory responsibility, technical judgement and client trust.
The hiring market is also steadier than it was. Permanent placements have finally stabilised, ending a decline in place since Liz Truss's premiership 45 months ago, while temporary billings increased for a fourth consecutive month REC / KPMG Report on Jobs (S&P Global). For employers, that points to a two-track approach: build permanent capability for regulated, long-term roles, and use temporary cover to flex around project and seasonal peaks.
When demand focuses on a narrower band of qualified people, the pool gets tighter. There were 2.5 unemployed people per vacancy in March to May 2026, a ratio that has held at 2.5 since July to September 2025 after rising quarter on quarter from July to September 2024 ONS - Vacancies and jobs in the UK. A cooler market can look like more available talent, but RQF 6+ specialists remain scarce and in demand.
It helps to watch where vacancies move, not just the headline total. In August to October 2025, the largest volume increase in vacancies was in the professional, scientific and technical activities sector, which rose by 5,000 ONS – Vacancies and jobs in the UK: November 2025. That tells you skilled, professional demand can grow even as the overall market softens, so speed and precision matter when the right person appears.
Start by being specific about the regulated responsibilities and the qualification level the role genuinely needs. Since recruitment here skews to RQF 6+ roles GOV.UK - Temporary Shortage List: Stage 2 report, a sharp brief on certifications, regulatory scope and the outcomes you expect will shortlist faster and screen out mismatches early.
Hiring well is really about matching the right person to the right role, fast, without cutting corners on the checks that financial services depends on. That balance of speed and rigour is where the right recruitment partner earns its place.
We search 15 million candidates to find the people who match your regulated, skilled roles, and we manage the process end to end so your team can stay focused on the work. Our recruitment agent manages recruitment end to end for 8% on a successful hire, with no monthly fee and no upfront cost. If you're hiring in finance or insurance in 2026, tell Reed.ai the role and we'll get started today.
