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December 7, 2025
This article explores the UK employment outlook for 2026, highlighting key job market trends and how jobseekers can adapt to changes driven by AI, shifting employer expectations and evolving recruitment practices.
If you’re looking for work at the moment, or if you suspect you’ll be looking early in 2026, you might be curious to know what the job market is doing. It’s easy to fall into the trap of listening only to statistics or anecdotes. Make no mistake, some sectors are struggling at the moment, and young people seem to be bearing the brunt of this downturn.
Regardless, there are some sectors that are faring better than others, and changes on the horizon could spell big changes in recruitment trends. We’re looking at some of the biggest trends in the UK job market for 2026 and what jobseekers need to know to be able to capitalise on these opportunities.
It would be fair to say that 2025 has been fairly volatile for jobseekers, with lots of uncertainty and employers holding their cards close to their chests. In 2026, we expect to see some easing of budgets and confidence returning to many sectors. This should lead to hiring growth and expansion of existing budgets. If you’re thinking about making a move, you may want to stay put until you’ve found another job, as it is very much an employer’s market at the moment.
The buzzword that dominated 2025 is going to continue to show up in workplace conversations in 2026 and beyond. Employers are becoming more AI literate and starting to find ways to integrate it more naturally with workflows.
This doesn’t mean that jobs are going to start disappearing in droves just yet, as companies will still need people to manage the AI output. It could mean that you could be expected to update your CV with new skills in 2026.
Bear in mind that employers still don’t have an accurate measure for AI competence, so be wary about positioning yourself as an expert just yet – awareness and curiosity should suffice.
One side effect of AI taking care of the grunt work is that soft skills are going to become more and more important for 2026 and beyond. Communication, team work, collaboration and stakeholder management are going to be key skills in demand for 2026. Those who have thrived on efficiency at the expense of their soft skills might find that they have to adapt to new ways of working.
Adapt to Change
Jobseekers who stay informed about AI, workplace expectations and hiring trends will be better positioned for opportunities in 2026.
Focus on Transferable Skills
Strong communication, teamwork and adaptability can help candidates stand out as roles and industries continue to evolve.
Another side effect of AI proliferation is that entry level roles are becoming much harder to find. These roles are usually taken up by graduates entering the workforce for the first time and will give them experience and proximity to the action, without actually placing any real responsibility on their shoulders.
It’s a great learning opportunity, but unfortunately, these roles have been cut due to efficiencies brought in by AI. It’s going to be a tough time for those trying to break into new industries, but rest assured that companies will have to adapt their talent pipelines. It could just mean that your first role is a lot more involved than you might be anticipating.
This will vary on a case-by-case basis, but some companies are stripping back hybrid working benefits, or removing them entirely. The arrival of AI has sown more seeds of doubt for employers, and they are no longer content to leave workers to it and trust the outcome.
If you’ve been brought back into the office, it’s likely because your employer wants to see a more proactive approach to your role. AI will soon take care of the routine tasks, so employees are going to need to show what they bring to the table outside of this. Doing this in the office in a collaborative environment is going to become more important for employers.
AI has also made itself comfortable in the recruitment sector, and both sides of the table have been experimenting with how to make this work best. Employers are using AI to streamline the selection process, and prospective hires are also using AI to help tailor their CVs to roles.
The old approach is not likely going to be very effective for much longer, and employers will be looking for candidates that are comfortable thinking outside of the box. This could mean more creative job seeking strategies, like in-person networking and finding ways to show off your niche expertise.
While recruitment and job hunting might be changing, it shouldn’t be cause for concern just yet. If you feel out of your depth and unsure, just remember that the majority of hiring managers will feel the same way. The best thing you can do to improve your chances of success in 2026 is to stay on top of developments and be adaptive to change.
Highlights
FAQs
Many sectors are expected to see renewed confidence and gradual hiring growth, although competition for roles may remain high.
AI is changing how work is done, but people are still needed to manage outputs, make decisions, and apply soft skills.
Staying adaptable, building soft skills, and using creative job search methods can help improve prospects.
