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UK hiring falls but demand for AI skills jumps, job site Indeed says

By Thomson Reuters Aug 2, 2026 | 6:02 PM

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.”

• 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

• 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

• At the end of June, AI or related tools and programmes appeared in ⁠9.4% of UK ‌job postings, a record high

• 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

• 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)