Global hiring confidence rises, boutiques pressured

ManpowerGroup said employers’ hiring plans strengthened for the second quarter of 2026, even as UK recruiters described a labour market that is still soft. (manpowergroup.com) (rec.uk.com) The company’s latest survey of more than 41,700 employers in 42 countries put the global Net Employment Outlook at 31%, up six points from the first quarter and down seven points from a year earlier. India posted the strongest hiring intentions at 68%, followed by the United Arab Emirates at 60%. (manpowergroup.com) In the UK, KPMG and the Recruitment and Employment Confederation said permanent staff appointments in February fell at the weakest rate since March 2023, and demand for workers declined at the slowest pace in nine months. The survey was compiled by S&P Global from responses from around 400 recruitment consultancies. (kpmg.com) The same UK survey said starting salary inflation slowed in February after hitting a 17-month high in January, while temporary wage growth also weakened. Recruiters linked that easing to a sharper rise in candidate availability at the start of 2026. (kpmg.com) The Recruitment and Employment Confederation’s April 2026 update showed the same pattern continuing into March: permanent placements still fell, but only marginally, and vacancies posted their second-slowest decline since May 2025. Candidate availability rose sharply, driven largely by redundancies and limited job openings. (rec.uk.com) That combination leaves hiring confidence and hiring activity telling different stories. Employers globally say they expect to add staff, but UK recruiters are still working through a market with cautious clients, rising labour supply and weaker pay pressure. (manpowergroup.com) (rec.uk.com) Advisory firms are facing a similar split. AlphaSense said consulting in 2026 is moving away from recommendations and billable hours toward implementation, measurable results and AI-enabled delivery. (alphasense.com) Its March analysis said large firms are investing in platforms and acquisitions, while specialized boutiques are gaining traction with deep technical expertise and greater agility. It also said AI-enabled delivery is now “table stakes” as clients push consultants to implement and govern systems, not just design them. (alphasense.com) For smaller recruiters and consultancies, that means a broader market recovery may not be enough on its own. The firms best placed to win new work are the ones that can point to sector expertise, faster execution and a clear outcome for clients spending more selectively. (alphasense.com)