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Why is UK hiring slowing down now?
UK hiring has slowed due to rising costs, economic caution, and global uncertainty. Companies are more cautious about expanding their workforce, focusing on high-demand roles and delaying new hires as they navigate economic challenges.
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Which sectors are most affected by the slowdown?
Traditional sectors like retail, manufacturing, and public services are experiencing declines in recruitment. However, some areas like technology are still seeing growth, driven by automation and AI, but overall, many sectors are cautious about hiring.
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Will tech jobs continue to grow despite the slowdown?
Yes, tech jobs are still increasing, especially in areas related to automation and AI. Despite the overall slowdown, demand for high-skilled tech roles remains strong, accounting for over 16% of vacancies, according to recent reports.
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What does this mean for workers in the UK?
Workers may face more competition for jobs, and companies might delay hiring or reduce permanent positions. However, high-skilled workers in tech and other in-demand fields could still find opportunities, especially as businesses focus on automation.
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How are businesses adjusting to the economic climate?
Many businesses are focusing on high-demand, high-skilled roles to recover profits. They are also prioritizing temporary staff and being more cautious about expansion, reflecting a more conservative approach to growth in 2026.
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What should job seekers do in this environment?
Job seekers should focus on developing high-demand skills, especially in tech and automation. Networking and staying flexible can also improve chances of finding opportunities in a cautious hiring climate.