Professional hiring activity across the South East is expected to strengthen again in 2026, although growth is becoming increasingly concentrated around specific functions. Rather than expanding headcount broadly, many employers are prioritising digital capability, engineering delivery and revenue generation, while more cyclical sectors continue to soften.
The UK tax labour market is entering a correction phase after a sharp expansion in 2025. Vacancies rose by around 19% last year, but are now projected to decline by roughly 10% in 2026, pointing to stabilisation rather than contraction.
Hiring conditions in the South West have improved at the start of 2026, though the pace remains controlled. Vacancies rose by 7.9% compared to the previous quarter, returning close to levels seen at the start of 2025. This suggests demand has stabilised, with employers resuming hiring where required rather than expanding broadly
Engineering hiring across the UK pharmaceuticals sector is entering a period of adjustment, with vacancies forecast to fall by 31.5% in 2026 following strong growth of 19.2% in 2025. The shift reflects a move away from expansion-led hiring towards a more efficiency-driven approach, as organisations respond to cost pressures and evolving operating models.
The North West enters 2026 from a position of relative strength, following a 7.7% increase in vacancies in 2025. However, that growth was far from smooth. Hiring peaked in March, rising 19.2% month-on-month, before falling 16.0% by August. Despite these swings, overall demand remained resilient, with the region accounting for 55.1% of all northern vacancies.
The UK’s data and AI labour market reached record levels in 2025, with vacancies rising 18.4% year-on-year as businesses moved beyond pilot programmes and began integrating AI into core workflows at scale. Annualised 2026 figures point to a further 13.2% increase, with January and February already posting year-on-year growth of 20.0% and 31.7% respectively. If current trends continue, one in four jobs in the sector will have been created in the last two years, a pace of growth unmatched by virtually any other part of the UK economy.
