While overall recruitment activity has cooled across parts of the UK labour market, demand for specialist and technology-focused roles — particularly those linked to artificial intelligence — remains resilient.
Recent recruitment industry data shows permanent hiring slowing and vacancy numbers easing compared with post-pandemic highs. However, digital, data and AI-related roles continue to attract strong employer interest, reflecting ongoing investment in transformation and automation.
Neil Carberry, Chief Executive of the Recruitment and Employment Confederation (REC), recently said:
“The labour market is loosening, but employers are still hiring where it matters. Skills shortages in key areas like tech and data haven’t disappeared.”
Recruitment analysts report that while junior and volume hiring has softened, employers are prioritising strategic hires — particularly in areas such as AI governance, cybersecurity, data analytics and digital infrastructure.
According to the latest Report on Jobs survey by KPMG and the REC, permanent staff appointments have continued to decline, but demand for specialist roles remains comparatively firm in sectors undergoing technological change.
Jon Holt, Chief Executive of KPMG UK, has previously commented:
“Businesses are adapting to economic uncertainty by focusing investment on productivity and innovation. That often means targeted hiring in specialist areas.”
Many of these roles are increasingly filled through executive search firms or professional networks rather than open job boards, creating what recruiters describe as a “two-speed” labour market — slower general hiring, but sustained competition for high-skill expertise.
The divergence highlights how AI and automation are reshaping recruitment patterns. While some entry-level and administrative roles face pressure from technological efficiencies, employers are simultaneously competing for talent capable of implementing and governing those technologies.
As overall unemployment rises to 5.2%, the split in hiring demand underscores a changing recruitment landscape: broader caution in expansion, but continued investment in specialist capability.