UK Hiring Declines but Record-High Demand for AI Skills, Indeed Reports
Key Findings from Indeed's 2026 UK Labour Market Survey
Overview of Hiring Trends
LONDON, Aug 3 (Reuters) - British hiring fell in the first six months of 2026 with job postings for graduates at their lowest since 2020, according to a survey from recruitment platform Indeed published on Monday that also showed demand for AI skills hit a record high.
"The UK's labour market is under sustained pressure. Hiring demand is falling across most parts of the economy, while posted wage growth is gradually cooling," Indeed senior economist Jack Kennedy said.
"That is particularly challenging for graduates and younger workers, who are competing for fewer opportunities to gain an initial foothold."
Detailed Labour Market Statistics
Decline in Job Postings and Wage Growth
• Job postings fell by 11% between the start of 2026 and July 17 and were 32% lower than before the COVID-19 pandemic
• Advertised wage growth cooled to 3.9% annually in the three months to June, the slowest since February 2022
Impact on Graduates and Seasonal Workers
• Graduate job postings were down 7% year-on-year as of July 10 and were at their lowest level for the time of the year since 2020
• Summer job postings, which cover temporary and seasonal roles, were the weakest in four years
AI Skills in High Demand
• At the end of June, AI or related tools and programmes appeared in 9.4% of UK job postings, a record high
Youth Unemployment and Government Response
Youth Unemployment Crisis
• Britain has faced a worsening youth unemployment crisis since the pandemic, with more than a million 16-to-24-year-olds not in education, employment or training, according to previously released data
Government Initiatives
New Technical Education Plans
• Last week, new Prime Minister Andy Burnham announced plans to align technical education and training for young people with local employment needs.
(Reporting by Suban AbdullaEditing by William Schomberg)
