{"id":14118,"date":"2026-03-30T19:09:52","date_gmt":"2026-03-30T18:09:52","guid":{"rendered":"https:\/\/www.hiringlab.org\/uk\/?p=14118"},"modified":"2026-03-30T19:32:06","modified_gmt":"2026-03-30T18:32:06","slug":"uk-labour-market-is-cooling-but-ai-hiring-is-bucking-the-trend","status":"publish","type":"post","link":"https:\/\/www.hiringlab.org\/uk\/blog\/2026\/03\/30\/uk-labour-market-is-cooling-but-ai-hiring-is-bucking-the-trend\/","title":{"rendered":"March 2026 UK Labour Market Update: The UK Labour Market Is Cooling but AI Hiring Is Bucking the Trend"},"content":{"rendered":"\n<p><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Overall UK job postings sit 27% below their pre-pandemic baseline, with annual posted wage growth easing to a four-year low of 4.0% in February as the labour market continues its gradual cooling.<\/li>\n\n\n\n<li>The outbreak of war in Iran and the resulting spike in global energy prices have clouded the outlook, with inflation fears pointing to tighter monetary policy and intensifying cost pressures on businesses.<\/li>\n\n\n\n<li>Against this backdrop, one area stands out: postings mentioning AI have climbed to 127% above pre-pandemic levels, underscoring how rapidly employers are embedding AI into their hiring even as the broader market retreats.<\/li>\n<\/ul>\n\n\n\n<p><em>Our Labour Market Updates examine important trends using Indeed and other labour market data. Our <\/em><strong><em><a href=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30180017\/European_Chartbook_2026-03-2.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">European Labour Market Overview chartbook<\/a><\/em><\/strong><em> provides a more comprehensive view of the European labour market. Other data, including the Indeed Wage Tracker, is regularly updated and can be accessed on our <\/em><a href=\"https:\/\/data.indeed.com\/#\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>data portal<\/em><\/strong><\/a><em>.<\/em><br><br>While overall UK job postings have continued to gradually fall, those postings mentioning AI are heading in the other direction. Whereas overall postings sat 27% below their pre-pandemic baseline as of end-February, postings with AI mentions were 127% above it \u2013 a divergence that has widened sharply since the public launch of ChatGPT in late 2022. As of end-February, around 7.5% of UK job postings had AI mentions.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30184206\/jpi_vs_ai_tracker_gb_2026-03-27-1024x640.png\" alt=\"Line chart titled \u201cAI job postings have surged while overall postings have fallen\u201d shows overall UK job postings and those mentioning AI from 2020 to 2026. While overall UK postings have continued to retreat, AI-related postings have surged.\u00a0\" class=\"wp-image-14127\" srcset=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30184206\/jpi_vs_ai_tracker_gb_2026-03-27-1024x640.png 1024w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30184206\/jpi_vs_ai_tracker_gb_2026-03-27-300x188.png 300w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30184206\/jpi_vs_ai_tracker_gb_2026-03-27-768x480.png 768w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30184206\/jpi_vs_ai_tracker_gb_2026-03-27-1536x960.png 1536w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30184206\/jpi_vs_ai_tracker_gb_2026-03-27-2048x1280.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cAI job postings have surged while overall postings have fallen\u201d shows overall UK job postings and those mentioning AI from 2020 to 2026. While overall UK postings have continued to retreat, AI-related postings have surged.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<p>The surge is not confined to the technology sector. Across knowledge-work occupations \u2013 from finance and marketing to HR and project management \u2013 postings referencing AI have risen steeply even as overall hiring in those sectors has softened. This suggests that employers are not simply hiring more AI specialists; they are increasingly expecting workers across a broad range of roles to engage with AI tools as a routine part of the job.<\/p>\n\n\n\n<p>What these postings signal about the nature of work is <a href=\"https:\/\/www.hiringlab.org\/2025\/10\/28\/how-employers-are-talking-about-ai-in-job-postings\/\" target=\"_blank\" rel=\"noreferrer noopener\">harder to pin down<\/a>. A mention of AI in a job posting signals everything from a requirement that candidates have deep technical expertise in machine learning to a simple notice that AI may be used in the hiring or screening process. What the data do make clear, however, is that the pace at which employers are articulating AI expectations \u2013 whatever their precise content \u2013 has accelerated dramatically. And in several sectors that have otherwise seen a striking decline in overall job postings, including marketing, HR and accounting, the number of job posts mentioning AI in these fields has more than doubled. For workers navigating a subdued job market, the growing prevalence of AI references in postings may increasingly shape which roles they are considered qualified for. The category with the highest share of AI-related postings is data &amp; analytics at 47%, followed by software development at 41%.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"854\" src=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30175211\/image-9-1024x854.png\" alt=\"Line chart titled \u201cPostings with AI mentions are defying recent trends in many knowledge work sectors\u201d showing overall job postings and those with AI mentions in different knowledge work sectors from 2020 to 2026. AI mentions have spiked in these occupations even as overall postings have cooled.\u00a0\" class=\"wp-image-14122\" srcset=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30175211\/image-9-1024x854.png 1024w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30175211\/image-9-300x250.png 300w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30175211\/image-9-768x640.png 768w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30175211\/image-9-1536x1281.png 1536w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30175211\/image-9.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cPostings with AI mentions are defying recent trends in many knowledge work sectors\u201d showing overall job postings and those with AI mentions in different knowledge work sectors from 2020 to 2026. AI mentions have spiked in these occupations even as overall postings have cooled.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Job Postings: Subdued, but stable<\/strong><\/h2>\n\n\n\n<p>Though UK job postings remain subdued, they have remained relatively stable in recent months at around 27% below pre-pandemic levels. That\u2019s in contrast to global peers, where postings are generally at or above baseline. UK employers were already cautious before the outbreak of war in Iran, with the subsequent spike in global energy prices set to intensify cost pressures facing businesses.&nbsp;<\/p>\n\n\n\n<p>There remain few signs of an acceleration in job losses, with leading indicators including <a href=\"https:\/\/www.gov.uk\/government\/publications\/publication-of-data-on-advanced-notification-of-redundancy-scheme\/management-information-on-advanced-notification-of-redundancy-scheme\" target=\"_blank\" rel=\"noreferrer noopener\">redundancy notifications<\/a> remaining modest and the latest <a href=\"https:\/\/www.hiringlab.org\/uk\/blog\/2026\/03\/20\/uk-employment-figures-march-2026-stabilisation-but-the-outlook-has-darkened\/\" target=\"_blank\" rel=\"noreferrer noopener\">payrolls<\/a> data having levelled out. But that equilibrium could be tested should energy costs stay high in a long-lasting conflict scenario, putting renewed pressure on firms to find savings.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30185915\/countries_posting_plot_ca_au_2026-03-13-1024x640.png\" alt=\"Line chart titled \u201cUK job postings continue to lag other advanced economies\u201d shows overall job postings for the UK, US, Canada, Australia, France and Germany from 2020 to 2026. UK job postings remain well below pre-pandemic levels, in contrast to peer economies where they are at or above baseline.\u00a0\" class=\"wp-image-14128\" srcset=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30185915\/countries_posting_plot_ca_au_2026-03-13-1024x640.png 1024w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30185915\/countries_posting_plot_ca_au_2026-03-13-300x188.png 300w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30185915\/countries_posting_plot_ca_au_2026-03-13-768x480.png 768w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30185915\/countries_posting_plot_ca_au_2026-03-13-1536x960.png 1536w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30185915\/countries_posting_plot_ca_au_2026-03-13-2048x1280.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cUK job postings continue to lag other advanced economies\u201d shows overall job postings for the UK, US, Canada, Australia, France and Germany from 2020 to 2026. UK job postings remain well below pre-pandemic levels, in contrast to peer economies where they are at or above baseline.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Posted wage growth has eased further<\/strong><\/h2>\n\n\n\n<p>UK posted wage growth continues to ease. The Indeed Wage Tracker recorded 4.0% year-on-year growth in February \u2013 the lowest reading in four years \u2013 as the post-pandemic wage surge continues its gradual unwind.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.ons.gov.uk\/employmentandlabourmarket\/peopleinwork\/employmentandemployeetypes\/bulletins\/averageweeklyearningsingreatbritain\/latest\" target=\"_blank\" rel=\"noreferrer noopener\">Official data tell a similar story<\/a>. Annual growth in regular pay eased to 3.8% in the three months to January 2026, according to the ONS. The headline is flattered by public sector pay, which rose 5.9% annually \u2013 partly reflecting the timing of pay awards that fell earlier in 2025 than in 2024. Strip that out, and private-sector regular pay growth of 3.3% offers a cleaner read on underlying pay pressures: modest and continuing to cool.<\/p>\n\n\n\n<p>Before the outbreak of war in Iran, this combination of easing wages and contained inflation expectations had set the Bank of England on a clear path toward further rate cuts. That calculus has now shifted. The surge in global energy prices has revived fears of persistent inflation, and with it the prospect of the Bank having to hold rates higher for longer. Financial markets have moved to price in rate hikes, which may overstate the case \u2013 but the rate relief businesses and households had been counting on this year looks out of reach for now. At a time when the labour market is already softening, the removal of that support could prove a meaningful headwind.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"569\" src=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30190048\/wage_growth_gb_ea_us_2026-03-20-1024x569.png\" alt=\"Line chart titled \u201cUK posted wage growth is easing\u201d shows the annual growth rate in posted wages from 2019 to 2026 for the UK, US and euro area. UK posted wage growth was 4.0% year-on-year in February, well down from peaks but remaining above that seen in the US and euro area.\u00a0\" class=\"wp-image-14129\" srcset=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30190048\/wage_growth_gb_ea_us_2026-03-20-1024x569.png 1024w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30190048\/wage_growth_gb_ea_us_2026-03-20-300x167.png 300w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30190048\/wage_growth_gb_ea_us_2026-03-20-768x427.png 768w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30190048\/wage_growth_gb_ea_us_2026-03-20-1536x853.png 1536w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/3\/2026\/03\/30190048\/wage_growth_gb_ea_us_2026-03-20-2048x1138.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Line chart titled \u201cUK posted wage growth is easing\u201d shows the annual growth rate in posted wages from 2019 to 2026 for the UK, US and euro area. UK posted wage growth was 4.0% year-on-year in February, well down from peaks but remaining above that seen in the US and euro area.\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>The UK labour market enters this period of heightened uncertainty from a position of gradual cooling rather than acute stress. Job postings remain well below pre-pandemic levels, wage growth is easing, and hiring intentions have softened \u2013 yet the more alarming signals of a sharp deterioration, such as a surge in redundancies or a collapse in payrolls, have so far failed to materialise.<\/p>\n\n\n\n<p>The war in Iran and the energy price shock it has unleashed represent a significant new headwind. Higher energy costs will squeeze margins, particularly in energy-intensive sectors, and the resulting inflation persistence may deny businesses and households the relief of further rate cuts they had been anticipating. Whether this tips a cooling labour market into a contraction will be influenced by the duration of the conflict.<\/p>\n\n\n\n<p>Amid this uncertainty, the rapid growth of AI-related job postings offers a striking counterpoint. While the broader market retreats, demand for roles explicitly referencing AI integration continues to accelerate. It is a signal that, for some employers, technological transformation is pressing ahead regardless of the macroeconomic backdrop. How far this dynamic can offset weakness elsewhere remains to be seen, but it serves as a reminder that structural change in the labour market does not pause for geopolitical shocks.&nbsp;<\/p>\n\n\n\n<p><strong>Hiring Lab Data<\/strong><\/p>\n\n\n\n<p>Job postings data is available on our <a href=\"https:\/\/data.indeed.com\/#\/\" target=\"_blank\" rel=\"noreferrer noopener\">Data Portal<\/a>. We also host the <a href=\"https:\/\/github.com\/hiring-lab\/data\" target=\"_blank\" rel=\"noreferrer noopener\">underlying job-postings chart data on <\/a>GitHub as downloadable CSV files. Typically, it will be updated with the latest data one day after this blog post is published.\u00a0<\/p>\n\n\n\n<p><strong>Methodology<\/strong><\/p>\n\n\n\n<p><em>Data on seasonally adjusted Indeed job postings is an index of the number of seasonally adjusted job postings on a given day, using a seven-day trailing average. Feb. 1, 2020, is our pre-pandemic baseline, so the index is set to 100 on that day.&nbsp;<\/em><\/p>\n\n\n\n<p><em>To calculate the average rate of wage growth, we follow an approach similar to the Atlanta Fed <\/em><a href=\"https:\/\/www.atlantafed.org\/chcs\/wage-growth-tracker\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>US Wage Growth Tracker<\/em><\/strong><\/a><em>, but we track jobs, not individuals. We begin by calculating the median posted wage for each country, month, job title, region and salary type (hourly, monthly or annual). Within each country, we then calculate year-on-year wage growth for each job title-region-salary type combination, generating a monthly distribution. Our monthly measure of wage growth for the country is the median of that distribution.\u00a0<\/em><\/p>\n\n\n\n<p><em>The number of job postings on Indeed.com, whether related to paid or unpaid job solicitations, is not indicative of potential revenue or earnings of Indeed, which comprises a significant percentage of the HR Technology segment of its parent company, Recruit Holdings Co., Ltd. Job posting numbers are provided for information purposes only and should not be viewed as an indicator of performance of Indeed or Recruit. Please refer to the Recruit Holdings investor relations website and regulatory filings in Japan for more detailed information on revenue generation by Recruit\u2019s HR Technology segment.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Job postings remain well below pre-pandemic levels, wage growth is at a four-year low, and an energy price shock threatens further pressure \u2013 yet demand for AI-related roles continues to surge.<\/p>\n","protected":false},"author":103,"featured_media":14130,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"recruiter-hub-blocks.php","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[1],"tags":[251],"post_mwm_category":[349],"post_topic":[],"post_content_type":[],"post_duration":[],"post_actions":[],"post_franchise":[],"post_mwm_author":[305],"class_list":["post-14118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-spotlight","post_mwm_category-state-of-the-labour-market","post_mwm_author-jackkennedy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>March 2026 UK Labour Market Update: The UK Labour Market Is Cooling but AI Hiring Is Bucking the Trend - Indeed Hiring Lab UK I Ireland<\/title>\n<meta name=\"description\" content=\"Job postings remain well below pre-pandemic levels, wage growth is at a four-year low, and an energy price shock threatens further pressure \u2013 yet demand for AI-related roles continues to surge\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hiringlab.org\/uk\/blog\/2026\/03\/30\/uk-labour-market-is-cooling-but-ai-hiring-is-bucking-the-trend\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"March 2026 UK Labour Market Update: The UK Labour Market Is Cooling but AI Hiring Is Bucking the Trend - Indeed Hiring Lab UK I Ireland\" \/>\n<meta property=\"og:description\" content=\"Job postings remain well below pre-pandemic levels, wage growth is at a four-year low, and an energy price shock threatens further pressure \u2013 yet demand for AI-related roles continues to surge\" \/>\n<meta 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