Insights

"December’s slowdown was expected, but it highlights how differently the contract and permanent markets are behaving. Contract hiring continues to play a critical role as organisations prioritise flexibility and remain cautious about long-term commitments. In the current climate, flexibility has become a strategic requirement rather than a short-term fix.

Permanent hiring has softened at points, yet year-on-year stability shows confidence has not disappeared, it has simply become more selective. Strong conversion rates across both markets suggest that when decisions are made, they are decisive, with quality continuing to outweigh volume despite wider use of AI.

This sits within a broader backdrop where London remains resilient but is clearly at a turning point. Corporate confidence is under pressure, reflected in reduced hiring across professional services and tighter margins in sectors such as hospitality and retail. While London still leads the UK labour market, sustaining that position will depend on adaptability, productivity gains through technology, and a clear focus on quality execution rather than scale alone."