Labour market growth continues but sunny outlook could be temporary
The number of active job postings went up by 5% in February from the month before, showing renewed activity in the labour market.
The latest Labour Market Tracker from the Recruitment and Employment Confederation recorded the number of live job postings at 1,530,172 in February 2026. New postings totalled 744,566, a 1.4% decrease on the month before.
The REC said February’s figure demonstrated that employers who had paused or delayed hiring at the end of 2025 were now renewing their interest in hiring, although described this as a “short period of relative economic calm” before the onset of the current crisis in the Middle East.
It found a rise in blue‑collar and hospitality workers in February 2026 and growth in manual jobs in the manufacturing and engineering sector. Active job postings in February 2026 were up 0.7% on February 2025, and new job postings increased 12% year-on-year.
The manufacturing sector saw a rise of 6.5% in jobs posted between January and February, with particular demand for candidates in elementary process plant occupations, mobile machine drivers and factory supervisors.
Engineering also enjoyed a second month of increased demand, with job postings up 5.1%.
The top three hiring hotspots, based on growth in active job postings in February 2026, were: Na h‑Eileanan Siar in the Outer Hebrides (up 54.8%), the Isle of Wight (up 18.6%) and West Essex (up 16.2%).
REC chief executive Neil Carberry said this labour market progress will be tested in coming reports as uncertainty in the Gulf puts pressure on employers.
“Business and government will need to work closely together in the coming weeks to manage these disruptions to deliver a better business environment in the UK this year, especially as anticipated interest rate falls are not now likely,” he said.
“Policymakers can help by making hiring easier for firms. Employment costs keep rising, so it is no surprise that unemployment is also up.
“Unnecessary frictions will only weaken the labour market – protecting the flexibility and focus of our jobs market has always seen us through moments like this and we need to commit to that strategy again.”
He urged the government to ensure the enactment of the Employment Rights Act was “pragmatic” so that workers “at the margins” would not miss out on employment.
“Leaving agency workers out of guaranteed‑hours proposals, or delivering a significantly different regime for them, would protect opportunities and investment,” he added.
Original Article: Personnel Today
If you need to hire talent in 2025 or need help with your recruitment advertising contact our digital recruitment specialist Gareth Allison on 0131 314 2744 or email info@myscotlandjobs.co.uk