Hiring Employees in the UK: Recruitment Challenges in 2026

Reading time: 6 min

The UK recruitment market has changed considerably since the record shortage of candidates seen after the pandemic. UK vacancies decreased to 691,000 between July and September 2026, 5.1% lower than a year earlier. The difficult recruitment situation in the UK is causing difficulties for employers who are trying to attract suitable candidates. This is extremely complicated when international companies are hiring employees in the UK, when attracting the right skills is only one of the challenges. They must also create a suitable recruitment strategy, be flexible, take care of staff and customer retention, as well consider what the employment requirements are when building a UK team.

What does the UK recruitment market look like in 2026?

UK employers are recruiting in a labour market where overall vacancies are declining, but finding the right skills can be challenging. According to the latest Office for National Statistics Vacancies and jobs in the UK release, there were an estimated 691,000 vacancies between July and September 2026. This represents a decrease of 21,000, or 2.9%, compared with the previous quarter, and a decrease of 37,000, or 5.1%, compared with the previous year

The UK vacancy rate was 2.1%, and there were around 2.4 unemployed people per vacancy in June to August 2026. This is affecting the overall atmosphere about the UK employment situation, and these figures point towards a cooler labour market. However, lower vacancy numbers do not necessarily mean that employers can easily find candidates with the skills and experience they need.

CIPD's Resourcing and talent planning report 2026 found that 52% of organisations reported greater competition for well-qualified talent during the previous year. More than half of organisations that attempted recruitment experienced difficulties attracting candidates, particularly for senior and skilled positions.

For international companies entering or expanding in the UK, understanding these conditions is an important first step towards building a realistic recruitment strategy.

Why can finding the right talent still be difficult?

Attracting suitable applicants can be one of the biggest challenges for companies nowadays. 58% of employers reported an increase in applications from unsuitable candidates, whereas only 33% reported an increase in suitable applicants. For employers, this can mean spending more time screening applications without necessarily creating a stronger shortlist.

Key UK recruitment indicators

Table 1: Key indicators affecting UK recruitment in 2026. Sources: Office for National Statistics and CIPD.

For businesses, the takeaway is straightforward: more candidates do not automatically mean easier recruitment, here a well-planned and targeted recruitment process can help companies focus their resources on the candidates most likely to match the position.

How can businesses attract suitable candidates?

A good recruitment strategy starts before the vacancy is published. Companies should first determine which skills and experience are genuinely required. An overly restrictive job description can narrow the candidate pool, while requirements that are too broad may generate large numbers of unsuitable applications.

Employers can strengthen the recruitment process by:

• clearly defining which skills are essential;
• separating essential requirements from skills that can be learned;
• considering relevant transferable skills;
• explaining responsibilities clearly;
• being transparent about working arrangements;
• communicating development and progression opportunities;
• creating a realistic picture of the role and organisation.

This is particularly relevant when recruiting for specialist or senior positions, where the pool of suitable candidates may be more limited. For international businesses, local market knowledge is also valuable. Salary expectations, benefits, recruitment channels and candidate expectations can differ between countries, so a hiring strategy that works in North America may need to be adapted for the UK market.

What should international companies consider before hiring in the UK?

For an international company, finding a suitable candidate is only one part of hiring in another country.

Before launching recruitment,

businesses should consider at least the complete employment process:

1. Role requirements: Which skills and experience are genuinely essential?
2. Local market: Is the proposed salary and benefits package competitive?
3. Recruitment strategy: Where and how will suitable candidates be approached?
4. Working arrangements: Will the position be on-site, hybrid or remote?
5. Employment structure: How will the employee legally be employed in the UK?
6. Payroll: How will payroll and employment administration be managed?
7. Compliance: Which local employment requirements apply?
8. Onboarding: How will the new employee be integrated into the business?

Thinking through these questions before making a hire can help prevent complications later.

For companies recruiting internationally, the objective should not just be to fill a vacancy. The employment structure also needs to support the employee once the recruitment process is complete.

Written by the HR Outsourcing team at EuroDev.

Sources

1. Office for National Statistics | Vacancies and jobs in the UK: October 2026
[https://www.ons.gov.uk]

2. CIPD | Resourcing and talent planning report 2026
[https://www.cipd.org]