The UK job market is entering a period of adjustment. Vacancies have declined slightly through 2025 but remain broadly in line with last year. For employers, the focus is shifting from recovery to readiness—especially with changes to National Insurance, minimum wage increases, and evolving candidate expectations shaping how businesses hire.
Are UK Vacancies Recovering?
Vacancy levels have not yet returned to pre-COVID highs, but signs of stability are emerging. Many employers are preparing for growth in 2026, particularly across engineering, manufacturing, technology, and renewable energy.
At Rise Technical, we’re seeing businesses invest in long-term recruitment strategies and future workforce planning to secure the skills they’ll need over the next few years.
What Are the Biggest Hiring Challenges for 2025?
Hiring managers across the UK continue to face three main challenges:
Finding skilled candidates – 70% of employers report that sourcing people with the right technical skills remains their biggest barrier.
Rising skill requirements – 58% have seen an increase in role complexity, with more demand for digital and technical capabilities.
Meeting flexible working expectations – 55% say balancing flexibility with operational needs is still a challenge.
Candidates continue to prioritise salary, career development, and work-life balance when considering a move.
How Is the UK Workforce Changing?
According to a recent Totaljobs survey, one in three UK workers plans to change jobs by 2026. This signals a more mobile and competitive market ahead. Businesses that focus on clear progression paths, professional development, and fair compensation are best placed to retain and attract top talent.
How Are AI and Automation Changing Recruitment?
AI-driven hiring tools are transforming how companies find and engage candidates. From automating repetitive tasks to analysing skills data, AI and automation are helping employers close skills gaps faster and make more informed recruitment decisions.
At Rise Technical, we’re already seeing AI-enhanced sourcing and skills-mapping play a growing role in technical recruitment across the UK and Europe.
The UK Job Market Outlook for 2026
While hiring remains competitive, there is optimism ahead. Businesses are adapting to regulatory changes, upskilling their teams, and using data and automation to strengthen hiring decisions. With steady confidence returning to the market, 2026 is expected to bring renewed growth and opportunity across engineering and technical sectors.
Key Takeaway:
Despite current challenges, the UK recruitment market is resilient. Employers who adapt early—by investing in skills, technology, and flexibility—will be best placed to attract and retain the talent they need for long-term success.
