Surviving the Employer’s Market in the UK in 2026
The UK job market has changed dramatically. After years where candidates had the upper hand, 2025–2026 has fully become an employer’s market. The rules of job-seeking have changed. This guide will help you survive and succeed in today’s employer-led economy.
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Key findings
- The UK job market has fully shifted into an employer’s market, with rising unemployment, fewer vacancies, and stricter hiring processes. Job seekers now face more competition than at any point since 2015.
- Job hopping has lost its power. The switching premium has collapsed, and short stints are once again seen as a red flag by more than 85% of HR professionals.
- The safest strategy is often to stay put. Building tenure, strengthening relationships, and demonstrating value internally (“The Big Stay”) is now the most effective path to job security.
- AI literacy is essential. Workers who use AI to improve productivity, analyse data, or automate tasks become significantly harder to replace.
- A strong CV in 2026 must be tailored, achievement-led, and hybrid-formatted, with quantified results and a clear explanation of any short roles. Generic or fully AI-written CVs get rejected.
- Referrals often outperform cold applications. Many roles never reach job boards, and internal referrals are becoming a key hiring channel for employers trying to reduce recruitment costs.
- Contractors will gain new opportunities from IR35 changes in April 2026, with thousands of companies reclassified as “small,” allowing contractors to self-assess IR35 status again.
- The most resilient professionals blend “power skills” with technical ones. Adaptability, leadership, communication, data literacy, and AI capability form hybrid profiles that employers actively seek.
The UK job market in 2025–2026: What’s really happening?
The UK is no longer in the fast-paced, candidate-driven environment we saw after the pandemic. Instead, the market has cooled, hiring has slowed, and employers now have far more power than job seekers.
Cooling down of the labour market
The latest ONS figures from late 2025 show a clear shift:
- 117,000 fewer people were on payroll compared to the previous year.
- This wasn’t a one-off drop. Payroll numbers fell in 11 out of 12 months, suggesting companies have been shrinking quietly through hiring freezes and natural turnover rather than dramatic layoffs.
- Unemployment has risen to 5%, higher than before the pandemic.
- Economic inactivity remains high (21%), with long-term sickness keeping many out of work. This creates “hidden slack”, which weakens workers’ bargaining power.
Vacancies tell the same story. There are about 723,000 open roles, down sharply from the 1.3 million peak in 2022. With over half a million fewer opportunities, job hunting simply takes longer, and winning roles is far more competitive.
Employer’s market dynamic
Because there are more job seekers than available roles, employers can afford to be highly selective. Recruiters report the fastest increase in candidate availability since 2020, which has triggered what many call a “flight to quality”. In other words, companies only want candidates who match the job perfectly and can deliver results immediately.
Here’s what that means in practice:
- Hiring processes are longer and tougher. Companies don’t rush decisions anymore. Many roles now involve several interview rounds, tasks, and tests. Employers want proof you’re the right choice because a bad hire is expensive, estimated at £132,000 for a manager-level mistake.
- Companies are more risk-averse due to rising costs. From April 2025, the employer National Insurance rose to 15%, and the threshold dropped to £5,000, making staff more expensive. This pushes companies to hire only when necessary and only when they find someone who fits the role exactly.
- Switching jobs no longer guarantees higher pay. In the past, moving jobs was the quickest way to increase your salary. That “job-hopping premium” has almost disappeared. Private-sector pay growth slowed to 4.2% in late 2025, and the pay gap between job changers and stayers has narrowed to its smallest level in 10 years.
From job hopper to job keeper: How career strategy has changed
We’ve officially moved into the era of “The Big Stay”. People are no longer quitting freely, and voluntary resignations have dropped to their lowest levels since 2015. There are two main reasons:
- Fear of instability: With rising redundancies and news of layoffs (e.g., in retail and tech), employees are prioritising the safety of their current role over the uncertainty of a new one. “Better the devil you know” has become the prevailing sentiment, as going through a probation period in a fragile market can feel risky.
- Money isn’t worth it anymore: In 2022, job switchers could get a 15–20% pay rise. By late 2025, that premium had virtually disappeared. On top of that, the risk of being the “last in, first out” during a redundancy round makes moving jobs much less attractive.
The return of the short-tenure stigma
During the hot job market, short stints were common, especially among Gen Z. But now employers view frequent moves as a warning sign:
- 37% of HR professionals say job hopping is a deal breaker.
- With hiring budgets under pressure, companies want people who will stay long enough to justify the cost of training and onboarding.
- Solid 2–3 year tenure is now the new “safe minimum” to show commitment.
The bottom line is: if you currently have a stable job, think twice before leaving. Unless the environment is toxic or your role is clearly at risk, staying put is the smartest move. If you choose to look for a job, don’t quit your current one until you have signed the contract. You shouldn’t risk being ghosted at the last second.
The contractor and interim market: what to expect in 2026
A major update to IR35 rules is coming in April 2026, and it will have a big impact on contractors. The government is increasing the thresholds that define whether a company is “small”, which determines who is responsible for assessing IR35 status.
New thresholds (from April 2026) will be:
- Turnover: up from £10.2m → £15m.
- Balance sheet: up from £5.1m → £7.5m.
Around 14,000 companies will now be classed as small. That shifts the responsibility for IR35 decisions back to contractors, not the client. Smaller companies are less likely to apply blanket bans on contractors. This gives you more freedom to operate outside IR35, especially when working through your own limited company (PSC).
But there’s a catch. You must ensure your working practices truly match an outside IR35 setup (e.g., control, substitution, mutuality of obligation). HMRC will likely focus enforcement on this newly expanded group.
How to succeed as a job keeper and avoid layoffs
Staying in the same company doesn’t mean standing still. In an employer’s market, you need to build value, visibility, and indispensable impact.
1. Become visibly valuable
Don’t assume your manager knows your impact. Companies make redundancy decisions quickly, often using performance, flexibility, and contribution as key criteria. To stay safe:
- Keep a weekly list of your wins (a “Brag Document”).
- Track numbers: saved hours, money saved, clients helped, problems solved.
- Share updates with your manager during 1:1s.
- Offer to take on small but high-impact improvements.
Some people have adopted the sentiment that hard work doesn’t pay off anymore and that everything is down to luck. But, while chance plays a role in life, you can actively create and leverage opportunities through your actions to help your luck.
2. Learn AI tools now
AI isn’t replacing everyone, but it is replacing repetitive tasks. People who use AI well become more efficient and harder to cut. When budgets shrink, the employee who works faster stays. Learn how to:
- Summarise long reports.
- Draft emails or presentations.
- Analyse spreadsheets.
- Automate admin tasks.
- Automate/speed up any other repetitive process that’s necessary in your job.
Just remember the quality of your output. While AI may make your job faster, it can also make it worse. Don’t leave everything to AI; monitor everything it produces.
3. Build strong internal relationships
Layoffs are not only about performance, but they are also about visibility and support. People vouch for and fight for people they know and trust. To protect yourself:
- Build rapport with leaders beyond your direct manager.
- Offer help generously.
- Be the person people want to keep.
- Avoid negativity.
4. Shift toward “profit centres”, not “cost centres”
During layoffs, companies protect teams that generate revenue or are essential for keeping the business running. To reduce your risk:
- Move toward roles in sales support, customer retention, operations, or delivery.
- Volunteer for cross-team projects with revenue impact.
- Make sure leaders understand how your work ties to the bottom line.
5. Upskill in the areas companies struggle to hire for
If you gain skills that your employer needs but lacks, you become harder to replace. Show your manager that you’re becoming the person who solves tomorrow’s problems. High-value skill areas include:
- Cybersecurity
- Big data literacy
- AI and automation tools
- Product management
- Change management
How job seekers can improve their CVs to stand out in 2026
Finding a job in an employer’s market requires a sharper, more strategic approach than in previous years. Recruiters are flooded with applications and have little patience for generic CVs or unclear career histories.
Here are the seven essential strategies from My Perfect CV to improve your CV and boost your chances of landing a role in 2026 and beyond:
- Lead with achievements: Use a hybrid CV format that showcases your personal summary, key strengths, and measurable results at the top.
- Explain short job stints: Provide brief, honest context (e.g., restructuring, project-based role) to remove doubt.
- Use AI smartly: Let AI help refine wording and identify keywords, but write your summary and key points yourself to keep authenticity.
- Tailor each application: Match your CV to the job’s priorities by adjusting skills, achievements, and wording.
- Quantify your impact: Turn tasks into results by adding numbers — savings, growth, improvements, or time reduced.
- Demonstrate “power skills”: Show adaptability, leadership, and problem-solving through real achievements, not generic claims.
- Leverage referrals: Use LinkedIn to connect with employees, request short informal chats, and aim for internal recommendations.
There are also two additional, highly reliable ways to improve your value: certifications and a portfolio.
- Certifications in areas such as AI tools, data literacy, cybersecurity basics, project management, or industry-specific software demonstrate to employers that you’re committed to continuous learning and staying relevant.
- Portfolio, even a simple one, helps you showcase real examples of your work, such as projects, reports, campaigns, code samples, designs, or case studies.
Together, certifications and portfolios reduce the employer’s perceived risk, which is why strong evidence of ability can sometimes compensate for limited experience.
Conclusion
Surviving an employer’s market is about strategy. The professionals who thrive in 2026 will be the ones who adapt quickly, show clear evidence of their value, and stay proactive in their development.
While the job landscape is tougher than in previous years, it’s far from hopeless. By focusing on stability, upskilling, and smart positioning, you can protect your career and stay competitive until the market improves. The goal for now is resilience. Strengthen your foundations, and you’ll be ready to take advantage of new opportunities when the market shifts back in your favour.
Methodology
This article was researched and written using recent, credible, and data-driven sources to reflect the realities of the UK job market heading into 2026. I analysed official labour market data, employer and recruiter reports, and reputable business journalism to understand hiring trends, wage movements, and employer expectations. All insights are grounded in quantified research from trusted organisations and were cross-checked to ensure accuracy.
Mariusz Wawrzyniak
Senior Content Writer
Mariusz is a career expert at My Perfect CV who writes practical, research-based guides that help professionals from all industries craft impactful CVs, write compelling cover letters, and advance their careers.
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