The latest ManpowerGroup Employment Outlook Survey (MEOS) has shown UK employers are continuing to hire despite a year dominated by political change, economic uncertainty, geopolitical disruption and rising operating costs.
The UK’s Net Employment Outlook (NEO) stands at +23 per cent for Q4 2026. While this represents a moderation from Q3’s exceptional reading of +36 per cent – driven in part by a wave of delayed recruitment decisions – hiring confidence remains more than double the +11 per cent recorded in Q4 2025.
Four in ten employers (40 per cent) expect to increase staffing levels during the final quarter of the year, compared with 17 per cent planning workforce reductions.
“At first glance, the story looks like hiring confidence has fallen, but that’s only true if you compare it to one of the strongest quarters we’ve ever seen,” said Lee Chant, Managing Director (UK & Ireland), ManpowerGroup UK. ”The real story is how employers have responded to the past 12 months. Businesses have faced political change, rising employment costs, geopolitical disruption and no shortage of uncertainty, yet they have continued to invest in people and plan for growth.
“Many would have expected confidence to weaken much further. Instead, UK employers have shown a level of resilience that shouldn’t be underestimated.”
One of the most striking findings in this quarter’s data is the breadth of improvement across the country. Every UK region reports stronger hiring intentions than it did a year ago. Continued investment in infrastructure, technology, energy, defence and local development projects is helping to drive demand for skills across sectors and regions.
The East of England (+35 per cent) reports the strongest hiring outlook in the UK and the largest annual improvement, rising 40 percentage points year-on-year and recording its highest hiring outlook in two years.
Chant continues: “The fact that confidence has improved right across the country says a lot about the adaptability of UK businesses.
“Behind some of the tougher headlines, we’re seeing investment, opportunity and demand for skills continue to emerge.”
UK employers in all nine sectors expect staffing levels to increase during Q4 2026. The Information sector (+34 per cent) reports the strongest hiring outlook nationally, while Hospitality records the largest annual improvement (+20 percentage points), followed by Trade & Logistics (+19 points) and Construction & Real Estate (+18 points).
Taken together, the results paint a picture of confidence spreading across the economy rather than being concentrated in a single sector. Many of the strongest year-on-year improvements are in sectors linked to long-term investment activity, indicating that major projects may be generating benefits across supply chains and supporting demand for skills throughout the wider economy.
UK employers in large organisations with 250 to 999 employees are the most optimistic, with a NEO of +31 per cent. Even though their outlook decreased by 12 points since last quarter, it is still up by six points since this time last year.
Employers in large enterprises (5,000 or more employees) report the greatest growth in NEO compared to the same quarter last year, with a 23 point increase. Globally, the UK ranks fifth for large enterprises’ year-on-year increase.
The UK’s hiring outlook of +23 per cent sits above the European average of +20 per cent, outperforming France (+13 per cent), Germany (+15 per cent), Italy (+16 per cent), Poland (+18 per cent) and Spain (+18).
Lee Chant concluded: “When you consider everything businesses have had to contend with over the past year, these figures are better than many would have expected. Employers have remained cautious, but they have not stopped hiring. As we approach 2027, the labour market is ending the year on firmer ground than many predicted.”
