Legal Job Market Report January 2026
in Legal Job Market Reports

Legal Job Market Report January 2026

Reading Time: 2 minutes

Legal Job Market Report – January 2026 – summary of the current state of the UK legal job market from Ten Percent Legal Recruitment.

Locum Recruitment – Quiet

Locum assignments are picking up again after Christmas but remain low; it is traditionally a very quiet time on the locum calendar for obvious reasons. New assignment numbers are c33% lower this year than last. Booking annual leave cover now for later in the year is a very good idea, as its a lot easier to source locums in the next 6 weeks than after this point.

Locum assignment updates here.

Permanent Recruitment – Busy

Permanent recruitment is busy. We are at least 33% up on last year in terms of new vacancies and there is activity from both candidates registering for work and firms looking for new staff. There remains a huge gap between interest in roles from candidates and vacancies being posted, together with a disparity between salary expectations of candidates and firms. No signs of any change here. Permanent vacancies can be viewed here: https://www.ten-percent.co.uk/vacancies/

Law Firms for Sale – Busy

Lots of activity in the M&A sector – we have had 9 new listings since the 1st January and our numbers of firms for sale are back up again. We recently ran a webinar, attended by over 80 law firm owners, on selling a law firm and valuations. To view the webinar please click here

– it is available for the next 7 days. Full details of firms currently for sale on our website

– list updated daily. For valuations, exit planning or a confidential discussion about a potential sale or acquisition generally please call 0800 246 5016 or email jf@jonathanfagan.co.uk. You can also download our free detailed guides on Buying a Law Firm and Selling a Law Firm.

Ten Percent Group statistics for Nov-Dec 2025 (2024 figures in brackets)

  • New locum roles added – 22 (36)
  • New permanent roles added – 42 (29)
  • New candidates added – 73 (98)
  • New law firms listed for sale: 2
  • Law firms for sale: 29
  • Deals going through (heads of terms signed): 5

Commentary:

Locum roles have declined, permanent jobs have increased. New candidate numbers are still down significantly on last year. Candidate numbers are a very good indication of market conditions.

KPMG & REC Report on Jobs UK – January 2026

This is a monthly report prepared by KPMG following a questionnaire sent to over 400 UK recruitment consultancies, including ourselves.

  • Permanent placements fall at sharpest rate since August
  • Temp billings decline at quicker, but mild rate
  • Starting salary inflation improves and temp pay returns to growth

Commentary from Jon Holt, CEO of KPMG UK

“The jobs market at the end of 2025 was still signalling caution. After a long stretch of rising cost pressures and higher global economic uncertainty, many firms continue to pause hiring and are flexing where they can by using temporary staff. Chief execs who have been prioritising increased investment in tech to improve resilience and productivity, will be looking for signs of greater confidence in the wider economy before turning the hiring taps back on.”

Commentary from Neil Carberry, REC CEO

“It’s always difficult to draw conclusions from jobs data in December, but the fact that the market slipped back a little on November is a reminder of the pressure employers are under.. and with placements falling at a slower pace than the 2025 average in December there is some hope that we are seeing a December dip, rather than a change in the trend.”

Jonathan Fagan

Jonathan Fagan LLM FIRP is Managing Director of Ten-Percent Legal Recruitment. He has been recruiting solicitors and legal support staff for law firms and in house legal departments for over 25 years and handles law firm sales & mergers. A non-practising solicitor on the Roll since 2000, he is also the author of a number of legal career books. You can contact Jonathan at cv@ten-percent.co.uk