Predictions 2026 (3)

In our 3^rd and final series of ‘Predictions for 2026’, here is a summary of the key workforce trends:

AI and Automation

2026 will see the shift from testing AI to embedding it in the workplace, with smart systems managing workflows and supporting human performance. AI ‘agents’ are expected to replace thousands of jobs, particularly in software engineering, but also create new roles focused on AI management and oversight.

Skills-Based Hiring

There will be a major shift toward prioritising specific skills over traditional qualifications. Employers will focus on candidates who can combine core skills with digital and AI capabilities. The most in-demand “power skills” will remain human-centric, such as collaboration, communication, and emotional intelligence.

Workforce Fluidity and Flexibility

Remote and hybrid work models will continue to thrive and become standard practice. The gig economy and use of freelance/contractors will also expand as businesses seek agility and cost-efficiency.

Employee Well-being

Mental health support, work-life balance initiatives, and holistic wellness programs will become necessary to employer strategies for talent retention.

Diversity, Equity, and Inclusion (DEI)

DEI initiatives will move beyond policy to become integrated into operational systems and culture, with a focus on neurodiversity, accessibility, and social mobility.

Summary

The UK job market in 2026 will require you as employers to adapt to ever-changing economic conditions, sector-specific regulations, and evolving workforce expectations. By focusing on skills development – especially Leadership Skills, embracing hybrid work models, and considering the demographic make-up of your workforce, you can address challenges like skills shortages and automation impacts while seizing growth opportunities in high-demand sectors.

Together with the forthcoming changes to the Employment Rights Bill, it’s going to be a challenging year for employers. We are happy to support with any/all of the above areas – as always, feel free to get in touch.