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The 2026 labour market presents a mix of stability and underlying pressure, shaped by rising wage expectations, shifting workforce behaviours and the introduction of major regulatory changes. Employers now face tougher decisions around cost, skills availability and how best to balance permanent and flexible staffing models.
Our 2026 Employment & Skills Outlook provides clear, practical insight to help organisations plan confidently in this environment. From understanding the implications of the Employment Rights Bill to building agility through blended workforce strategies, this report highlights the actions employers should prioritise in the year ahead.
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Key Findings & Insights
1. Stability masking underlying pressures
Hiring has steadied, but wage inflation, skills gaps and employer caution continue to shape the market.
2. Skills shortages continue
Engineering, digital, logistics and green‑tech roles remain hard to fill, driving up starting pay.
3. Major regulatory changes
The Employment Rights Bill brings day‑one rights and tighter compliance requirements.
4. Rethinking hiring models
Permanent roles support core functions; temporary labour provides essential flexibility.
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