The latest KPMG and REC UK Report on Jobs for January 2026 signals an important shift in the interim and temporary recruitment market.

After falling in the final two months of 2025, temporary billings increased in January. This was the first rise in three months and only the second expansion since June 2024. While the rate of growth was described as marginal, the change in direction is significant.

A Clear Preference for Short-Term Expertise

The Temporary Billings Index rose to 50.3 in January, moving back above the neutral 50.0 threshold that signals growth. The REC report attributes the increase to a preference for short-term staff and new project activity.

This reflects what many businesses are experiencing. Rather than committing immediately to permanent hires, organisations are bringing in specialist support to deliver defined outcomes, strengthen leadership during transition, and accelerate strategic initiatives. Where businesses need clarity at the board level or support through restructuring and investment preparation, many are turning to strategic interim finance leadership.

Stabilisation Rather Than Contraction

Permanent placements continue to decline, but at the slowest rate seen in 18 months. This suggests the market is stabilising rather than weakening further.

At the same time, accounting and financial roles remain among those experiencing skill shortages. Even in a moderated hiring environment, specialist capability is still in demand. In situations where time-sensitive financial challenges arise, businesses are increasingly unlocking the value of experienced interim finance professionals to maintain momentum while longer-term hiring plans evolve.

Interim as Part of Strategic Workforce Planning

The report also highlights positive hiring intentions, particularly among larger firms, as organisations prepare for improving conditions through 2026 and beyond.

Preparation does not automatically mean permanent expansion. Increasingly, it means building flexibility into workforce strategy. Businesses are looking to strengthen compliance frameworks, improve financial reporting, and deliver complex transformation programmes without increasing long term overheads. This is where scaling capability through flexible interim finance expertise becomes commercially compelling.

Interim hiring allows organisations to access senior-level skills when they are needed most, manage risk more effectively, and adapt as market conditions improve.

Skills Shortages Continue to Influence Demand

The REC data confirms ongoing shortages across accounting and financial disciplines. While overall vacancies remain below growth levels, demand for high-level financial capability has not disappeared.

For organisations navigating system implementations, restructuring, funding rounds, or regulatory change, waiting months for a permanent appointment can delay progress. Interim professionals provide immediate expertise, structured delivery, and measurable outcomes.

A Market Moving from Caution to Preparation

January’s data does not indicate a rapid rebound. What it does show is measured confidence returning to parts of the market:

• Temporary billings have moved back into growth
• Permanent declines are easing
• Hiring intentions remain positive among larger firms
• Wage pressures persist in specialist areas

For businesses reviewing their workforce plans in 2026, adaptability and strategic workforce planning will remain essential. Interim recruitment is not simply a reactive measure. It is increasingly a structured approach to managing expertise, cost control, and business resilience.

If you are assessing how to strengthen finance or leadership capability in the months ahead, we would be pleased to discuss how interim expertise can support your next phase of growth.