UK employers are signalling a sharp uptick in hiring intentions for the third quarter of 2026, in a potential boost for the labour market after a period of uneven economic growth.
New figures from the ManpowerGroup Employment Outlook Survey show a Net Employment Outlook of 37, up 10 percentage points on the previous quarter and 18 points higher than a year ago, suggesting a broad-based increase in recruitment appetite across the economy.
Overall, 49 per cent of employers said they expect to increase staffing levels over the coming months, compared with 12 per cent who anticipate cuts. A further 35 per cent expect no change, while 4 per cent remain unsure.
The UK’s outlook places it fourth globally, behind India and Puerto Rico (both on 48), the United States (45) and Brazil (38), and well above the global average by 11 points.
While the headline figures point to strengthening confidence, the picture across sectors remains uneven.
Information leads the way with an outlook of 46 per cent, followed closely by construction and real estate at 43 per cent, reflecting continued demand in infrastructure and digital industries. By contrast, hiring intentions are significantly weaker in hospitality, at just 12 per cent, and in the public sector, health and social services, at 29 per cent.
Most sectors recorded quarterly improvements, with finance and insurance the only areas to register a decline, slipping marginally from 38 to 36 per cent.
Michael Stull, UK Managing Director, ManpowerGroup UK: “UK businesses are realising the need for people.
“Uncertainty has dominated the UK economy and job market for months, but that is not sustainable for businesses, employees or the consumer. That’s why we are seeing the needle shifting in terms of a willingness to hire.”
Regionally, the strongest hiring sentiment is in the North West, with an outlook of 48 per cent — the highest in the UK. The North East follows at 46 per cent, with Northern Ireland at 45 per cent. Wales also saw a marked improvement, rising 21 points to 29 per cent.
London, by contrast, reports a more subdued outlook of 32 per cent, highlighting a continued shift in hiring momentum towards regions outside the capital.
Organisational size also appears to play a role in recruitment plans. Mid-sized and upper mid-market firms are leading the way, with businesses employing between 250 and 999 staff reporting the strongest outlook at 43 per cent, closely followed by those with 50 to 249 employees at 42 per cent.
Larger organisations with more than 5,000 employees reported a lower outlook of 25 per cent, while micro-businesses with fewer than 10 employees recorded 24 per cent.
Despite the positive direction of travel, analysts caution that hiring is unlikely to return to the large-scale expansion seen in previous cycles. Instead, many firms appear focused on filling specific vacancies that were previously delayed, often in low single-digit headcounts.
There are also signs of continued caution in parts of the labour market, particularly among smaller firms, which tend to be more sensitive to cost pressures and demand fluctuations.
The survey also highlights a continued emphasis on entry-level recruitment, with 47 per cent of employers expecting to hire for such roles. Around 39 per cent anticipate recruiting non-management staff, while 30 per cent expect to fill supervisory or junior management positions.
While this may offer some encouragement in the context of long-standing concerns about youth unemployment, analysts stress that structural challenges in the jobs market remain deeply entrenched.
Even so, the overall tone of the survey suggests a labour market that is regaining momentum, albeit unevenly, as employers cautiously rebuild headcount and respond to shifting demand conditions.
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