The broad picture is calmer than it has been for a while. The labour market is now described as 'low hire, low fire', with weaker recruitment but only slight increases in redundancies, and vacancies have dropped below pre-pandemic levels Low Pay Commission Report 2025, GOV.UK. For lenders, that means fewer competing offers chasing the same person, and more room to be deliberate about who you bring in.
The overall vacancy trend is still soft. Early estimates for May to July 2026 suggest a 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. A quarter earlier, total estimated vacancies were down by 18,000 (2.5%) in April to June 2026 from a year earlier, with the ratio holding at 2.5 unemployed people per vacancy ONS - Vacancies and jobs in the UK. In short, the market has loosened, and candidates have more reason to listen when the right role appears.
There is a steadier signal underneath all this. 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 financial-services teams, that mix of stabilising permanent hiring and rising temporary demand is a chance to plan permanent roles carefully while covering peaks with contract cover.
Demand is tilting towards senior, qualified people. In the financial-services sector, recruitment was generally for Regulatory Qualification Framework (RQF) 6+ roles, rather than RQF 3-5 GOV.UK - Temporary Shortage List: Stage 2 report. RQF 6 sits at degree level, so lenders are competing hardest for experienced, credentialled specialists in risk, compliance, underwriting and credit, not entry-level headcount.
The wider professional labour market frames that competition. The largest volume increase in vacancies in August to October 2025 was in the professional, scientific and technical activities sector, which rose by 5,000 ONS – Vacancies and jobs in the UK: November 2025. More recently, that same sector saw one of the largest falls, down 4,000 vacancies in April to June 2026 ONS - Vacancies and jobs in the UK. The takeaway for lenders is that demand for skilled professionals moves quarter to quarter, so timing your approach matters.
Zoom out and the direction is clear. Total estimated vacancies were down by 76,000 (9.5%) in December 2025 to February 2026 from a year earlier, decreasing in 15 of the 18 sectors ONS – Vacancies and jobs in the UK (March 2026). A softer market gives lenders a stronger negotiating position for permanent hires, and a wider pool of experienced people who are open to the right move.
Start by being precise about the qualification level you actually need. With hiring skewed to RQF 6+ roles GOV.UK - Temporary Shortage List: Stage 2 report, a vague brief wastes weeks. Define the regulatory qualifications, the systems experience and the must-have conduct knowledge up front, so every person you shortlist clears the bar on day one.
Next, move quickly when you find the right person. The market is 'low hire, low fire' Low Pay Commission Report 2025, GOV.UK, which sounds slow, but experienced specialists are still scarce and still weighing their options. A tight process, clear communication and a fast interview booking keep strong people engaged before anyone else moves.
This is where we help. Our recruitment agent manages recruitment end to end for 8% on a successful hire, with no monthly fee and no upfront cost. That fee is about finding the right person and taking the whole process off your desk. Ready to find your next hire? Tell Reed.ai the role and we'll get started.
