The picture is shifting. Permanent placements have finally stabilised, ending a decline that had been in place for 45 months, since Liz Truss's premiership, while temporary billings rose for a fourth consecutive month the REC and KPMG Report on Jobs. For financial-services employers, that stabilisation matters. It signals the long contraction in permanent hiring has run its course, and firms can plan ahead with more confidence.
The wider market is still cautious. The labour market is currently described as 'low hire, low fire', with weaker recruitment but only slight increases in redundancies, and vacancies have dropped below pre-pandemic levels the Low Pay Commission Report 2025. So the restart is real, but it is measured. Employers are not flooding the market with roles. They are choosing when and who to hire with more precision than before.
The reliance on temporary workers tells its own story. Temporary billings have now increased for four months running, even as permanent placements level off the REC and KPMG Report on Jobs. Many insurers have leaned on contract and interim talent through the downturn, keeping teams flexible while the outlook was uncertain. Now that permanent hiring has stabilised, the question is how to convert that flexibility into lasting capability.
That rebuild spans claims, underwriting, actuarial, compliance and data roles, the functions that keep an insurer competitive and well governed. With vacancies still below pre-pandemic levels the Low Pay Commission Report 2025, the strongest people often have fewer open roles to choose from, which gives prepared employers a real advantage. The latest market readings continue to track these monthly shifts the June 2026 KPMG and REC UK Report on Jobs.
Start with clarity. In a 'low hire, low fire' market the Low Pay Commission Report 2025, every permanent hire carries weight, so define the role, the skills and the regulatory requirements before you advertise. For insurers, that means being specific about qualifications, Senior Managers and Certification Regime obligations and the data skills modern underwriting and claims now demand.
Then move quickly on the right people. A slower market does not mean a slow process. The best candidates still get snapped up. Keep your shortlist tight, your interview stages few and your feedback fast. Treat interim and contract colleagues who have proven themselves as a natural pipeline for permanent roles. And protect the experience: how you hire tells people how you work, and that reputation follows you into the next hiring cycle.
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, through Reed.ai. If you are rebuilding permanent teams in insurance or wider financial services, start a role with us today and see your shortlist take shape.
