Lamplighter’s Candidate Marketplace Assessment – April 2026

What Q1’s data reveals about hiring and candidate experience

Lamplighter Candidate Marketplace is a regular snapshot of the UK hiring landscape. We look at labour market signals and apply candidate experience insight to help organisations understand how their hiring processes may need to adapt.

Rather than predicting outcomes, this series focuses on how the market feels right now, how candidate and business behaviour is shifting and what that means for organisations trying to attract and retain talent.

Where the market sits at the end of Q1 2026

The March data suggests the employment market is no longer declining and is starting to stabilise, albeit at a lower level of confidence.

According to the Recruitment & Employment Confederation, permanent placements declined in March, but only marginally and at a similar rate to February. Temporary placements also fell modestly, but again, the pace of decline has slowed.

More notably, demand for staff is still weakening but at the slowest rate in nearly a year.

What this means in practice:

The market isn’t quite bouncing back just yet, but the rate of contraction is easing. Employers are no longer pulling back as sharply as they were toward the end of 2025, which suggests a degree of stabilisation.

However, this is not the same as confidence returning but rather “let’s wait and see” hiring behaviour.

Some employers are beginning to move ahead with roles that were previously delayed, but this is balanced by continued cost pressure and uncertainty.

Labour market signals: stability masking softness

Wider labour market data reinforces this picture of stability on the surface, but cautiousness underneath.

Latest figures from the Office for National Statistics show:

• A continued (albeit small) decline in payrolled employees
• Vacancy levels now at their lowest point since early 2021
• Employment broadly stable, but with rising economic inactivity
• Wage growth slowing, with real-term increases close to flat

At the same time, insights from Indeed show that wage growth has slowed to its lowest level in several years, while external pressures,  particularly rising energy costs, are increasing financial strain on businesses.

What this means in practice:
From the outside, the labour market looks relatively steady. But underneath, there are clear signs of reduced momentum:

• Fewer new roles being created
• Less upward pressure on salaries
• Businesses becoming more cautious with hiring decisions

In short, hiring is continuing but with tighter controls and less flexibility.

Candidate supply is rising

One of the most important developments in March is the increase in the number of candidates available in the marketplace.

REC data shows that the supply of candidates has grown at the fastest pace seen so far in 2026, driven by redundancies and reduced job opportunities.

What this means in practice:
There are now more candidates competing for fewer roles.

On paper, this gives employers more choice, but it also have some impacts on hiring processes:

• Application volumes tend to increase
• Time spent reviewing candidates increases
• Decision-making can slow down further

Recruitment process watchpoints for today’s marketplace

As the market stabilises and candidate availability increases, the risks in recruitment processes begin to shift. These are the three areas that most commonly impact hiring outcomes right now.

Maintain engagement as volumes increase

As more candidates enter the market, organisations often see an increase in applications. This can put pressure on response times and communication quality, increasing the likelihood that candidates will disengage or accept alternative offers.

You should: Maintain consistent communication and clear progress updates throughout the process, even as volumes increase.

Avoid over-complicating the hiring process

With more candidates to choose from, organisations can become more selective. This often leads to additional interview stages or more internal stakeholders becoming involved.

You should: Keep hiring processes proportionate. Remove unnecessary stages and ensure decision-making remains timely and focused.

Reinforce value beyond salary

With wage growth slowing and budgets under pressure, salary is becoming a less reliable lever for attracting and securing talent. Candidates will be placing more weight on non-pay factors and are more likely to disengage if these aren’t clearly communicated.

You should: Ensure recruitment messaging clearly communicates the full value of the role, including development, culture, flexibility, and long-term progression.

Summary

March 2026 reflects a labour market that is stabilising, but still remains under pressure. Hiring has not stopped entirely, but confidence amongst business leaders remains cautious. Candidate availability is naturally increasing, but wage growth is slowing and cost pressures persist.

What this ultimately means:
Success in this market is less about generating applications, and more about managing the process effectively once candidates enter it.

Organisations that maintain engagement, avoid unnecessary complexity, and clearly communicate their value will be best positioned to convert interest from best quality candidates into hires.