The Rhino Report – June 2026

If you've spent any time around recruitment recently, you've probably noticed that nobody quite agrees on what the job market is doing.

One employer tells us hiring has completely dried up, another is desperately trying to fill three vacancies before the end of the month. One candidate can't get a reply after sending 50 applications, another has two offers on the table and doesn't know which one to accept.

It's a strange market.

The headlines tell us vacancies are falling, businesses are becoming more cautious, and employers are watching every penny. Yet behind the scenes, companies are still hiring, projects are still moving forward, and specialist talent is proving just as difficult to find as ever.

This month, we're looking at why this is happening, what we're seeing across the recruitment market, and what both employers and candidates should be paying attention to as we move further into 2026.

Everybody Says There Are More Candidates. So Where Are They?

One of the most common things we hear from employers at the moment is:

"There seem to be more people looking for work."

And they're right.

The latest labour market data shows candidate availability has increased, driven by redundancies, hiring freezes and fewer companies actively recruiting. At the same time, UK vacancies have fallen to around 705,000, the lowest level since early 2021. On paper, that should make hiring easier.

Unfortunately, that's where things get interesting.

Because while there may be more people looking for jobs, many businesses are still struggling to find the people they actually need. It's a bit like being hungry, opening the fridge and discovering it's full of things you don't want to eat.

There's plenty there, just not the right thing.

We're seeing this particularly across engineering recruitment, manufacturing recruitment and technical recruitment projects. Employers are receiving more applications, but they're still searching for candidates with the specific skills and experience needed to hit the ground running.

In fact, engineering was the only sector to record an increase in permanent vacancies during April, highlighting just how different specialist markets look compared to the wider UK job market.

The result is a strange situation where candidates feel like competition has increased, while employers feel like talent is still hard to find. Both sides are right.

The market isn't short of people, it's short of the right people.

For employers, this means recruitment processes need to become sharper. The businesses that identify good candidates quickly and make decisions confidently are still securing the best talent.

For candidates, it's a reminder that standing out matters more than ever. A strong CV, clear achievements and evidence of real impact can make all the difference when you're competing against dozens of similar applicants.

Employers Haven't Stopped Hiring. They've Started Overthinking It.

There was a time when a hiring manager could spot a good candidate, arrange two interviews and make an offer within a week. Those days feel increasingly rare.

Right now, many employers are caught in a difficult position.

• They still need people.
• They still have projects to deliver.
• They still have teams that need support.

But they also have rising costs, economic uncertainty and senior leaders asking whether every new hire is absolutely necessary.

The latest KPMG and REC data reflects exactly that. Permanent placements continued to fall during April, while temporary and contract hiring increased for the first time in months and recorded its strongest growth in more than two years. Employers still need work done. They're just looking for more flexibility in how they do it.

As a result, recruitment processes are getting longer.

• More meetings.
• More approvals.
• More interview stages.
• More "let's just wait another week and see what happens."

The irony is that the candidates employers want most are usually the least likely to wait around. While one company is scheduling a fourth interview, another is making an offer. We've seen it happen repeatedly this year.

The businesses that are hiring successfully aren't necessarily spending more money than everyone else. They're simply making decisions faster and in today's market, speed has become a genuine competitive advantage.

Getting Your Foot In The Door Is Becoming Harder

If you're an experienced professional, the market may feel challenging.

If you're trying to start your career, it feels even tougher.

One of the biggest stories emerging this year isn't about senior talent shortages or salary trends. It's about entry-level opportunities.

Graduate vacancies were down 34.9% year-on-year according to recent labour market analysis, while youth unemployment has climbed to 16.2%, its highest level in more than a decade. Official figures also show that 13.5% of 16 to 24-year-olds are now not in education, employment or training.

That's a worrying trend not just for young people. For employers too. Because today's entry-level candidates become tomorrow's supervisors, managers, engineers and business leaders.

Yet many young people are finding it increasingly difficult to secure that first break.

Competition for graduate jobs has increased. Apprenticeship opportunities have become more competitive. Even jobs that were once considered entry-level are often asking for experience that many candidates simply don't have.

It's the recruitment equivalent of being told you need experience to get experience.

Employers aren't intentionally making life difficult. Many are under pressure themselves and want new hires who can contribute quickly but if businesses stop creating opportunities for junior talent today, they'll end up complaining about skills shortages tomorrow.

The companies getting ahead are the ones thinking long term. They're investing in apprenticeships, trainee programmes and future talent pipelines while others focus entirely on experienced hires.

Because everybody has to start somewhere.

The Cost Of Hiring Just Got More Expensive

Let's be honest. Most employers don't wake up in the morning excited about employment legislation but this year, many don't have much choice.

The National Living Wage increased to £12.71 in April, alongside a series of employment law and workplace policy changes that businesses have had to absorb. At the same time, ONS business data found that labour costs are now one of the biggest concerns facing UK employers, with 39% of businesses citing them as a key challenge.

For larger businesses, it's another item on the agenda. For smaller businesses, it can completely change recruitment plans.

We've already seen some employers become more selective about hiring decisions, while others are increasingly using contract recruitment, temporary recruitment and project-based hiring to give themselves greater flexibility.

That doesn't mean opportunities are disappearing, it simply means every hire is being examined more closely.

Candidates are increasingly being asked not just what they can do, but how they'll contribute to the wider success of the business.

The days of hiring simply because a team feels busy are becoming less common, businesses want a clear return on investment.

And that's understandable.

It Feels Like We're Talking About Two Different Job Markets

Perhaps the biggest lesson from the last few months is that there isn't really one UK job market anymore, there are lots of smaller ones.

Talk to a specialist engineering recruitment company and you'll hear stories about skills shortages, difficult searches and fierce competition for talent. Talk to somebody in another sector and they'll tell you vacancies are harder to find than they were a year ago.

Both experiences are true.

That's what makes the market so difficult to judge right now.

The latest data shows active job postings increased in places like London and Scotland, while engineering remains one of the most resilient sectors for hiring. At the same time, vacancies have continued to fall in other parts of the market, particularly in lower-paid and customer-facing sectors.

National statistics tell part of the story but they don't tell all of it.

Your experience depends on your industry, your location, your skills and the type of role you're looking for. That's why broad statements like "the market is booming" or "the market is terrible" don't really work anymore. The reality sits somewhere in the middle.

And as recruiters, we're seeing that reality play out every day.

Final Thoughts

If there's one thing we've learned from May, it's that assumptions are becoming dangerous.

Employers can't assume more applications mean easier hiring, candidates can't assume fewer vacancies mean there are no opportunities, and nobody can assume the experience they're having reflects the entire market.

The businesses performing best right now are the ones staying flexible, making decisions quickly and keeping a close eye on where talent is moving.

The candidates performing best are doing something similar. They're adapting, staying visible and focusing on the skills employers genuinely need. If you're looking for guidance on where to start, our job search page is updated regularly with live roles across engineering, construction and specialist sectors.

The market may feel uncertain, but uncertainty doesn't stop opportunities from appearing, it just makes them a little harder to spot.

And that's where good recruitment has always made the difference.