Increase In Permanent Hiring Expected Before Year End

More than one-third of UK employers plan to increase permanent hiring before the end of the year according to the latest research.

Key Findings:

• Employers continue to invest in flexible workforce models, with 25% planning to increase contract hiring

• Demand remains strongest in Technology & IT, where nearly half of employers intend to increase permanent recruitment

• Skills shortages remain a key challenge, with employers increasing investment in training, upskilling and reskilling

• AI is changing the nature of work, but employers continue to value human judgement, communication skills and critical thinking

UK employers are continuing to invest in talent despite ongoing economic uncertainty, according to new research from global talent solutions and business consulting firm Robert Half. The survey of 500 hiring managers across the UK shows more than one-third (34%) plan to expand permanent headcount before the end of the year, while an additional 25% plan to increase contract hiring, and 24% intend to expand project-based hiring to support business priorities and maintain workforce flexibility.

The findings suggest the hiring market is becoming more selective rather than slowing, with employers focusing on recruiting in areas that drive growth and productivity. This includes technology, cybersecurity, accounting, risk and compliance, digital marketing and communications, legal affairs and customer support functions.

"Organisations are continuing to hire where skills are scarce, and talent can directly support strategic business objectives," said Matt Weston, Senior Managing Director, UK & Ireland at Robert Half.

"Employers are taking a targeted approach to hiring, prioritising specialist talent and investing in training and workforce development."

Hiring Plans By Professional Field

• Technology & IT: 47% plan to increase permanent hiring, 29% contract hiring and 30% project-based hiring.

• Finance & accounting: 38% plan to increase permanent hiring, 29% contract hiring and 26% project-based hiring.

• Marketing & creative: 30% plan to increase permanent hiring, 22% contract hiring and 24% project-based hiring.

• Administrative & office support: 29% plan to increase permanent hiring, 25% contract hiring and 22% project-based hiring.

• Legal, risk & compliance: 24% plan to increase permanent hiring, 20% contract hiring and 19% project-based hiring.

Employer Investment In Skills Development

To address persistent skills shortages and workforce challenges, organisations are taking a multi-pronged approach. More than a quarter (26%) expect even greater competition for highly skilled talent. In addition, six in 10 small-to-midsized enterprises and nearly two-thirds of large organisations (64%) say training, upskilling and reskilling are key strategies for addressing workforce challenges, while 36%plan to redesign roles and ways of working.

Employers are increasingly seeking candidates who can combine technical expertise with critical thinking, communication skills and business judgement. The findings suggest AI is changing the nature of work rather than reducing the need for skilled talent.

“As organisations continue to grapple with skills shortages and an ageing workforce,

they are investing in employee development and technology while competing for top talent,” Weston added.

“Employers increasingly need professionals who can use AI effectively while bringing the critical thinking, judgement and communication skills that technology alone cannot provide."