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.
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:
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:
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:
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:
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:
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:
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:
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:
Agree on:
Automate admin and avoid unnecessary meetings so your team can focus on the work that really moves the needle.
Offer short, practical workshops on structured interviews, inclusive hiring and decision hygiene.
Monitor:
Then act on the insights.
Encourage wellbeing, set boundaries and make time for reflection - stress erodes performance faster than any market challenge.
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.