The backdrop is cautious, and that shapes every hiring plan. The wider labour market is 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's 2025 report. In other words, employers are being selective rather than shedding people.
The national numbers point the same way. Vacancy estimates fell on the quarter, with early figures for April to June 2026 suggesting a decrease of 7,000 vacancies, or 0.9%, to 712,000, and there were 2.5 unemployed people per vacancy in March to May 2026 the ONS vacancies bulletin. For employers in banking, that means a deeper pool of available talent, but also more scrutiny over which roles get signed off.
There is one encouraging signal underneath the caution. Permanent placements have finally stabilised, ending a decline in place for 45 months, while temporary billings rose for a fourth consecutive month the REC and KPMG Report on Jobs. So the market isn't frozen. It's recalibrating, and the firms that plan well now are set to move first as confidence returns.
The split is clearest at the senior, specialist end. In financial services, recruitment was generally for Regulatory Qualification Framework (RQF) 6+ roles, rather than RQF 3 to 5 roles the GOV.UK Temporary Shortage List Stage 2 report. RQF 6 maps to degree-level and above, so firms are chasing experienced, regulated and highly qualified people rather than entry-level hires.
That creates two different hiring plans running side by side. Some teams compete hard for scarce senior talent in risk, compliance, quant and technology. Others hold back on junior and mid-level recruitment while the market stays soft. The result is divergence: a tight contest for the few, and patience everywhere else.
Flexibility is part of the story too. With temporary billings rising for a fourth month running the REC and KPMG Report on Jobs, more banking employers are using contract and interim hires to cover projects and regulatory deadlines without committing to permanent headcount straight away.
Start by being precise about the role. When the competition is for RQF 6+ specialists the GOV.UK Temporary Shortage List Stage 2 report, a vague brief loses you the best people. Define the exact qualifications, regulatory experience and skills you need, then prioritise them so your shortlist reflects what really matters.
Move quickly on the senior roles and patiently on the rest. With 2.5 unemployed people per vacancy the ONS vacancies bulletin, you will see strong applicants for general positions, which takes time to filter. For scarce specialists, speed wins: a slow process loses the one or two people who fit.
Finally, plan for the turn. With permanent placements stabilising after 45 months of decline the REC and KPMG Report on Jobs, the employers who build strong talent pipelines today will be ready the moment confidence returns.
When the contest is for a small number of qualified specialists, reach and speed matter. We search a database of 15 million candidates, rank a shortlist in seconds and help you book interviews fast, so you can focus your attention on the people who truly fit a regulated, senior role. Our recruitment agent manages recruitment end to end for 8% on a successful hire, with no monthly fee and no upfront cost. Ready to plan your next banking hire? Start today with Reed.ai.
