The latest KPMG and Recruitment and Employment Confederation (REC) UK Report on Jobs survey for 2026 signalled a modest improvement in hiring conditions in January, with the pace of decline in permanent placements slowing to its weakest level in 18 months. Temporary billings also returned to growth, though gains remained marginal amid subdued business confidence and tight client budgets.

Permanent staff appointments continued to fall in January. However, the rate of contraction eased compared to late 2025, suggesting some stabilisation in the labour market, said the report based on a survey compiled by S&P Global from responses to around 400 UK recruitment consultancies.

Recruiters linked the softer downturn partly to reduced uncertainty following the government’s recent Budget announcement, which prompted some firms to proceed with hiring plans.

The latest KPMG and REC survey report showed UK hiring conditions stabilising in January 2026, with permanent placements falling at the slowest rate in 18 months and temporary billings returning to marginal growth.
Vacancies continued to decline, though more slowly, while candidate availability rose at a softer pace.
Stronger competition for scarce skills lifted starting salaries and temp wages.

Temporary billings increased for only the second time since May 2024, pointing to cautious reliance on flexible staffing solutions. Despite this, overall vacancies declined again, although the pace of reduction was the second-slowest recorded over the past seven months.

Candidate availability continued to rise at the start of the year, frequently attributed to redundancies and limited job openings. However, the rate of expansion was the softest in 12 months. Growth in permanent candidate numbers slowed markedly, while the increase in temporary staff availability also moderated.

Pay pressures intensified in January as competition for scarce skills drove stronger wage growth. Starting salaries for permanent staff rose at the fastest pace in nearly 18 months, while temporary wage inflation reached its joint-highest level since May 2024.

Demand for staff remained under pressure across the UK. Permanent vacancies contracted at a slightly slower pace than in December but continued to fall more sharply than temporary roles.

Regionally, permanent placements declined at a notably softer rate in the North of England and the Midlands, with the latter recording marginal growth. London and the South continued to see more pronounced reductions. Temporary billings rose sharply in the Midlands and increased in the South for the first time in two years, while the North of England recorded another steep fall. London posted a solid but softer decline.

Sectorally, permanent staff vacancies decreased across all ten monitored job categories. Nursing, medical and care roles saw the sharpest contraction, whereas engineering recorded the mildest decline. In the temporary segment, blue-collar roles were the only category to register growth, albeit marginal. Nursing, medical, care and retail experienced the steepest drops in temporary demand.

Overall, while January data point towards tentative stabilisation, recruitment activity remains constrained by fragile market confidence and ongoing cost pressures.

Commenting on the latest survey results, Lisa Fernihough, head of advisory at KPMG UK said: “After a difficult end to last year, it’s encouraging to start this year with tentative signs that hiring appetites are beginning to improve as chief execs respond to signs of easing uncertainty by starting to push forward with their plans.

“Skills shortages in specialist areas continue to impact the market, particularly where competition for talent remains intense. There are parts of the economy poised for investment, and as skills needs align with greater market stability, we could start to see more consistent improvement in hiring as the year progresses.”

Neil Carberry, REC chief executive, said: “There have been increasing signs from businesses as we enter 2026 that uncertainty on hiring plans is giving way to action. That does not mean a general hiring upswing, but the ‘wait-and-see’ period seems to be ending. Rising temp billings and a levelling off in the permanent market speak to these clearer plans. REC members across the country report a change in tone since the start of the year.

“The decisions firms are now making involve lots of trade-offs, such as whether to create jobs in the UK or elsewhere, or which jobs need the human touch as opposed to an automated solution. A growing, inclusive economy requires high levels of employment—a focus on encouraging firms to create jobs rather than discouraging that investment is more important than ever. So far, the government has struggled to convince businesses it wants them to hire. That has to change in the decisions that are made this year if we are to avoid a continued rise in unemployment.”

Fibre2Fashion News Desk (SG)

India’s global supply chain leader PDS Limited has reported gross merchandise value (GMV) of ₹4,660 crore (~$513.78 million), an increase of 6 per cent year on year (YoY) in the third quarter (Q3) of fiscal 2026 (FY26) ended December 31, 2025. Meanwhile, revenue from operations increased 2 per cent to ₹3,173 crore (~$349.83 million).

The gross profit for the quarter grew 13 per cent to ₹720 crore, up from ₹637 crore a year earlier, indicating improved product mix and operating discipline. However, EBITDA rose 11 per cent to ₹109 crore from ₹96 crore, while profit after tax (PAT) declined 18 per cent to ₹37 crore compared to ₹45 crore in Q3 FY25.

PDS Limited has reported GMV growth of 6 per cent to ₹4,660 crore (~$513.78 million) in Q3 FY26 and revenue increased by 2 per cent, while PAT fell 18 per cent.
For 9M FY26, GMV rose 7 per cent to ₹14,760 crore (~$1.63 billion), though EBITDA and PAT declined.
The company improved working capital, cut net debt sharply, and expects gains from new trade agreements and tariff reductions.

For the nine months (9M) period, GMV increased 7 per cent YoY to ₹14,760 crore (~$1.63 billion). Revenue from operations rose 6 per cent to ₹9,591 crore, compared to ₹9,052 crore in 9M FY25, PDS Limited said in a press release.

The gross profit for 9M stood at ₹1,982 crore, up 8 per cent from ₹1,830 crore in the same period last fiscal. However, EBITDA declined 16 per cent to ₹263 crore from ₹312 crore, while PAT fell 35 per cent to ₹106 crore from ₹162 crore in 9M FY25, reflecting margin pressures and a challenging global retail environment.

PDS reported significant improvements in working capital efficiency, with net working capital days reducing from approximately 17 days to around 7 days over the past nine months. The company generated ₹644 crore in operating cash flow during the nine-month period.

As a result of stronger cash generation and disciplined capital management, net debt reduced sharply from ₹374 crore in March 2025 to ₹70 crore as of December 2025, strengthening the company’s balance sheet and financial flexibility.

The company expects to benefit from recently signed trade agreements, including the EU-India trade deal and the UK free trade agreement, as well as US tariff reductions applicable to India operations, particularly Knit Gallery, and Bangladesh. These developments are anticipated to enhance sourcing competitiveness and support future growth.

With improved working capital metrics, lower leverage and steady GMV expansion, PDS is positioning itself to navigate global demand volatility while capitalising on emerging trade and tariff advantages.

Commenting on the results, Pallak Seth, executive vice chairman, said, “The global apparel landscape continues to be shaped by evolving trade dynamics, sourcing realignments and shifting customer priorities. Demand trends are exhibiting gradual and uneven stabilisation across key markets, with customer buying behaviour remaining cautious. Benefits from the EU trade agreement, UK FTA and reduced US tariffs on India & Bangladesh are expected to unfold progressively, the acquisition of Knit Gallery & our diversified sourcing operations position us well to capture these opportunities.”

Sanjay Jain, group CEO, said, “In a period marked by external volatility, we remain focused on strengthening operational effectiveness across the organisation. We have undertaken strategic actions to optimise costs at both the platform and business levels, reinforcing our commitment to building a resilient and cost-efficient PDS. By concentrating on high-impact areas and streamlining underperforming verticals, we are enabling sustainable growth while building a stronger, future-ready organisation focused on enhancing long-term profitability.”

Fibre2Fashion News Desk (SG)

Following the removal of the additional 25 per cent US tariff and the prospect of a significantly lower reciprocal tariff of 18 per cent under the proposed India–US trade deal, India’s textile and apparel industry is optimistic that the coming decade could mark a defining phase for India in global textile and garment trade.

The Apparel Export Promotion Council (AEPC) has welcomed the revocation of the additional 25 per cent duty, which came into effect at 12:01 EST on February 7, 2026, pursuant to Executive Order 14239. The move follows the India–US joint statement on the trade agreement, which aims to enhance bilateral market access and strengthen supply chain cooperation.

India’s textile and apparel industry has welcomed the removal of the additional 25 per cent US tariff and the prospect of an 18 per cent reciprocal rate under the proposed India–US trade pact.
AEPC said the agreement will enhance market access, cut non-tariff barriers, and improve competitiveness.
The deal is expected to boost exports, generate jobs across MSMEs and support farmers.

“On behalf of the entire textile and apparel industry, we welcome the India–US joint statement on the trade deal and the withdrawal of the additional 25 per cent duty imposed earlier,” AEPC chairman Dr A Sakthivel said.

He expressed gratitude to Prime Minister Narendra Modi for his leadership and to Commerce and Industry Minister Piyush Goyal for his efforts in concluding what he described as a landmark agreement with the US.

According to AEPC, the agreement represents a historic milestone for India’s textile and apparel sector, opening opportunities across the entire value chain. It is expected to generate substantial employment, particularly for women and MSMEs, while also benefitting farmers in rural India, thereby supporting inclusive and sustainable growth.

The removal of tariffs and improved market access are expected to significantly enhance the global competitiveness of Indian textiles and apparel, positioning India as one of the most reliable and trusted sourcing destinations worldwide. The deal is also expected to address non-tariff barriers, reduce compliance burdens and procedural delays, and enable faster movement of goods into the US market.

“The coming decade is poised to be India’s decade in textile trade,” Dr Sakthivel said, adding that the agreement could usher in a golden era for the Indian textile and apparel industry.

Fibre2Fashion News Desk (KUL)