Labour Market Report – March 2026
Labour Market Overview
The latest ONS Labour Market Overview shows that:
HM Revenue and Customs (HMRC) has revealed more than 7 million people started a new job in 2025, an increase of 300,000 on last year. Jobseekers and those starting new jobs are encouraged to download the HMRC app for essential job-related information.
The Work Foundation, part of Lancaster University, has published new research which found that a record 1.23 million UK workers are now on zero-hour contracts in their main employment, 181,000 more than when the government was elected.
Government Policy
From April 2026, employers with 250 or more employees will have the option to produce and publish voluntary action plans on how they are planning on reducing the gender pay gap and supporting employees experiencing menopause alongside their gender pay gap data.
These will become mandatory from spring 2027, subject to secondary legislation. A list of recommended, evidence based actions has been provided including how to make job descriptions inclusive. This voluntary reporting could be useful in demonstrating equity as part of the SMETA 7.0 audit requirements.
Apprenticeships
The government has announced a major £1 billion youth employment drive aiming to create 200,000 jobs for young people, alongside the biggest transformation of apprenticeships in a decade. This will include incentives of up to £3,000 for each qualifying young person hired, expansion of the Jobs Guarantee to a wider age range, from 18-21 to 18-24 and further reforms to the Growth and Skills Levy to prioritise young apprentices.
GEM Partnership has a ‘Good’ rating from Ofsted and has also been recognised or accredited by numerous organisations including HABC, EAL, City and Guilds, DSW, United Centre of Excellence, Qualitrain and ILM. We hold the Matrix Standard and are registered with the UK Register of Learning Providers. Some of the Apprenticeship programmes we offer are below:
- Engineering & Manufacturing Foundation Apprenticeship
- Lean Manufacturing Operative Level 2 Standard
- Supply Chain Warehouse Operative Level 2 Standard
- Business Administrator Level 3 Standard
- Team Leader Level 3 Standard (commercial only)
- HR Support Level 3 Standard
- Learning & Development Practitioner Level 3 Standard
- Customer Service Practitioner Level 2 Standard
- Customer Service Specialist Level 3 Standard
- Improvement Technician Level 3 Standard
- Improvement Specialist Level 5
- Operations Manager Level 5 Standard (commercial only)
If you would like any more information about apprenticeships, or any of our other training solutions please contact Kelly.lee@gempartnership.com
Employment Trends
KPMG and REC, UK Report on Jobs: North of England has reported that March survey data signalled a second consecutive monthly increase in permanent staff appointments across the North of England. Notably, this marked the first back-to-back upturn in placements in over three and a half years. Recruiters linked the increase to a combination of higher vacancies, the end of hiring freezes at some companies and signs of greater mobility in the jobs market. In comparison temp billings fell solidly in March, which has been the case since last November.
For the second time in as many months, recruiters based in the North of England signalled a rise in job openings in March, demand for permanent staff rose at a solid pace that was the strongest since mid 2024. Demand for short-term workers meanwhile expanded at a rate that, though modest, was the fastest in just over a year-and-a-half.
Latest data revealed a further increase in permanent staff availability across the North of England in March. The rate of expansion was not only the sharpest seen in 2026 so far, but also substantial overall. According to anecdotal evidence, more redundancies, higher unemployment and company closures all drove availability higher. The supply of temporary labour expanded again in March within the North of England, stretching the current period of growth to just over three years. Panellists noted that increased redundancies, skills mismatches and company closures were also behind the latest uptick.
The seasonally adjusted Permanent Salaries Index remained above the 50.0 no change mark for a fourth month running, to signal sustained growth in starting salaries across the North of England. The rate of inflation was the weakest seen over the aforementioned period and only modest. For the first time in four months, recruiters in the North of England signalled a drop in rates of pay for temporary workers during March. Although only fractional, the reduction in average hourly wages contrasted with a slight increase at the national level.
UK Immigration Policy
The Home Office has announced a series of immigration policy changes affecting asylum seekers and refugees. Refugee status will become temporary, with reviews every 30 months for new adult applicants. An emergency visa brake has been applied to Afghanistan, Cameroon, Myanmar and Sudan, ending study visas for all four countries and skilled work visas for Afghans. English language requirements for settlement have been strengthened from GCSE level to the new A-level standard. Support will be withdrawn from asylum seekers who break the law, work illegally or cannot support themselves. In addition, stricter rules will exclude foreign offenders from the UK, with entry clearance refused or revoked for those given a suspended sentence of 12 months or more, regardless of when the offence occurred.
The Home Office has published updates on eVisas. From 11 March 2026, Home Office travel documents will automatically be linked to an individual’s UKVI account. They will be able to view their travel document alongside their eVisa. Most people who make a successful application for a UK visit visa, and most other UK visa types, on or after 25 February 2026 will only get an eVisa
Commentary
Maria Miller – Operations Director (Maria.Miller@gempartnership.com)
GEM Partnership can support with your temporary and permanent staffing requirements, providing a total workforce solution, which covers both recruitment and retention of the workforce. We would love the opportunity to meet with you and provide a free training needs assessment where we can identify, any gaps in training allowing you to bolster your operations, retain talent, and unlock the potential of your most valuable asset – your employees.
References
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/march2026
https://www.gov.uk/government/news/new-figures-reveal-7-million-started-a-new-job-in-2025
https://www.gov.uk/government/news/major-employment-drive-to-help-unlock-200000-new-jobs-and-apprenticeships-for-next-generation
https://www.lancaster.ac.uk/work-foundation/news/zero-hour-contracts-reach-new-record-high-as-workers-wait-for-new-rights-to-arrive
https://www.gov.uk/government/collections/action-plans-list-of-actions
https://www.gov.uk/government/publications/creating-an-action-plan-guidance-for-employers
https://www.gov.uk/government/publications/make-job-descriptions-inclusive
https://www.gov.uk/government/news/refugee-protection-to-be-reviewed-every-30-months
https://www.gov.uk/government/news/visa-brake-imposed-on-4-countries-after-widespread-visa-abuse
https://www.gov.uk/government/news/higher-standard-of-english-now-required-to-settle-in-the-uk
https://www.gov.uk/government/news/asylum-handouts-and-accommodation-removed-for-illegal-migrants-abusing-britains-generosity
https://www.gov.uk/government/news/foreign-criminals-excluded-from-uk-under-strict-new-rules
https://www.gov.uk/government/publications/updates-on-the-move-to-evisas/updates-on-the-move-to-evisas
https://kpmg.com/uk/en/media/press-releases/2026/03/kpmg-rec-uk-job-report.html