8 predictions for 2026 recruitment

Recruitment in 2026 won’t be defined by one dramatic shift. Instead, it will be shaped by a cooling labour market, selective hiring, skills shortages and smarter use of technology. These trends are already visible in UK data and employer surveys and will only become more pronounced. For HR and recruitment managers, this is the year to shape workforce strategy with clear actions.

Here are eight predictions for 2026 recruitment, with practical and tangible steps you can start taking now.

Selective hiring becomes the norm

Across the UK market, hiring activity has softened. Recent surveys show vacancies and placements continuing to fall, with employers cautious about headcount growth amid economic uncertainty and cost pressures. In late 2025, demand for permanent and temporary placements declined further, even as salary growth remained modestly positive.

What this means: employers will only hire when there is a clear value proposition, meaning hiring teams have to be far more disciplined about who they bring in and why.

What you can do:

• Implement a structured vacancy approval process where hiring managers complete a business case before a role is posted.
• Define impact metrics (e.g. revenue influence, project delivery timelines) that tie a hire to business outcomes.
• Track quality of hire rather than just fill rates.

The market becomes split

Data from Indeed shows continual weakness in job postings relative to pre-pandemic levels, and rising candidate availability, but also strong pockets of specialist demand, particularly in tech and AI-related roles.

This means 2026 will feel candidate driven in high-skill areas and employer-driven for generalist and entry-level roles.

What you can do:

• Segment roles into buckets (highly specialised vs general).
• Create role-specific candidate journeys that accelerate offers where speed matters.
• For high-volume roles, standardise screening and leverage data to make early decisions

Skills-based hiring moves from theory to practice

Research shows 70% of recruiters struggle to find people with the right skills, signalling a shift towards evaluating competencies over credentials.

In 2026, organisations will increasingly hire based on what someone can do rather than where they’ve worked or what degree they hold.

What you can do:

• Replace traditional CV screening with:
  • Skills challenges
  • Task-based assessments
  • Portfolio reviews
• Build structured scorecards that rate skills against defined role requirements.
• Train interview panels to ask behavioural and scenario-based questions tied to real job tasks.

Internal mobility becomes a strategic priority

With external hiring subdued across many sectors, more organisations will look inward to find talent. Some public sector employers are already planning headcount reductions, indicating a need to make the most of existing skills (source: CIPD).

Internal mobility isn’t just a retention tool - it’s a strategic response to tighter hiring.

What you can do:

• Launch or expand internal talent marketplaces so employees can see and apply for internal roles.
• Implement skills mapping tools to identify capabilities across your workforce.
• Offer cross-training and clear progression pathways.
• Make internal moves a key metric in workforce planning.

AI goes from tool to operating model

AI isn’t new to recruitment, but in 2026 it will become integral to how you operate. Whether it’s automating scheduling or helping shortlist candidates, AI will increase efficiency. However, organisations are also emphasising the need for governance and bias monitoring and that can't be ignored!

What you can do:

• Map out your recruitment workflow to identify repeatable tasks suitable for AI.
• Standardise use of generative AI for scheduling and candidate messaging, while keeping humans in the loop for decision points.
• Set clear ethical guardrails (e.g. bias testing for screening algorithms).
• Create a monthly AI performance review to adjust and refine.

Flexible staffing makes a comeback

Surveys show employers increasingly use temporary and contract workers to manage costs and flexibility amid uncertain demand.

In 2026, blended workforce models - combining permanent, temporary and contract talent - will be a staple for organisations tackling both peak workloads and specific projects.

What you can do:

• Develop a preferred supplier list for contingent talent.
• Keep a warm pool of reliable contractors for rapid deployment.
• Streamline approvals for short-term roles.
• Track utilisation and outcomes from flexible staffing to inform future sources.

Public sector recruitment transforms structurally

While both sectors face challenges, public sector hiring intentions have lagged, with some evidence suggesting expectations of staff decreases in certain areas.

This will force HR teams in government and public services to re-engineer how they plan and attract talent, particularly in digital, care and compliance roles that remain critical to service delivery.

What you can do:

• Invest in data-driven workforce planning - use analytics to predict retirements, shortages and hotspots.
• Formalise career frameworks that allow easier moves across departments.
• Standardise job families and role competencies.
• Run quarterly workforce forecasts with leadership.

Employer branding becomes more honest

As the labour market cools, candidates are less responsive to flashy messaging and more reliant on clarity and realism, especially around flexibility, pay and growth opportunities.

What mattered in boom years - broad promises - won’t cut it. Candidates want real insights into lived experience.

What you can do:

• Refresh job ads to include:
  • Realistic day-to-day responsibilities
  • Explicit pay bands
  • Flexibility options
• Use real employee testimonials focused on substance over style.
• Publish career path examples and case studies.
• Audit your careers site for authenticity - remove vague slogans.

Daily actions that will set you up for 2026

1) Run better intake meetings

Agree on:

• Priority skills
• Timelines
• Success metrics
• Decision owners

2) Protect recruiter time

Automate admin and avoid unnecessary meetings so your team can focus on the work that really moves the needle.

3) Train hiring managers

Offer short, practical workshops on structured interviews, inclusive hiring and decision hygiene.

4) Use data weekly

Monitor:

• Time to offer
• Drop-off rates
• Offer acceptance rates
• Source effectiveness

Then act on the insights.

5) Build resilience

Encourage wellbeing, set boundaries and make time for reflection - stress erodes performance faster than any market challenge.

The mindset shift that matters

Ultimately, the most successful recruitment teams won’t ask:
“How many roles do we fill?”

They’ll ask:
“What capabilities does the business actually need?”

This shift - from volume to purpose - will define recruitment success in 2026.