UK trails in global hiring race, facing the world’s sharpest yearly and quarterly decline
The UK’s challenging labour market conditions are taking their toll on business confidence going into Q4. Our report reveals hiring demand falls again to just +11% (a decline of -17 percentage points YoY and -9 percentage points on the quarter) – the biggest drop in year-on-year planned hiring globally, underscoring the scale of the British slowdown.
Employers continue to face challenges from increased national insurance contributions and rising operational costs, as well as uncertainty around both the economy and government commitments, leading many businesses to adopting a more conservative hiring approach.
Mid-level roles are experiencing the sharpest drop at 13%. In contrast, demand for AI-skilled talent is bucking the trend, where it is showing the strongest growth.
IT continues to lead on sector performance, with Finance & Real Estate following behind. Energy & Utilities posted the strongest quarterly growth, while Consumer Goods & Services and Industrials & Materials are tied for the sharpest year-on-year drop.
Petra Tagg, Director, ManpowerGroup UK, said:
“It’s a tough outlook for the UK at the moment. Whereas last year the same pressure was being felt across Europe, this year the UK labour market is steering its own course, and it’s unlike one we’ve faced before. A new market predicament is an opportunity for organisations to evolve and become more efficient; by focusing on productivity and the strategic development of talent, businesses can weather uncertainty, attract high-quality candidates and position themselves for long-term success.”
Find out more in the Q4 2025 ManpowerGroup Employment Outlook Survey report, featuring detailed insights on employer hiring intentions by industry, region and company size:
