How is the job market looking so far in 2026?
With disruption aplenty and the UK unemployment rate at just over 5% (for the three months to October 2025), the highest level since early 2021, things aren’t looking great, with indications of some weakening in the UK job market.
The current UK skills landscape shows that there are just over 5 million workers in occupations that are classed as critical demand, which accounts for 15.4% of total employment. It’s not a massive surprise to find out that software development professionals and programmers top the list, so some of the most in demand skills in 2026 concentrate on tech skills. This is backed up by the fact that UK employers prioritise specialised skills, with 67% of bosses stating that these skills influence their willingness to pay competitive salaries. We’ll explore that in more detail later on in this article.
If businesses can face up to a VUCA landscape, and instill certain skills within the workforce in order to face any problems, then all will be right with the world.
VUCA stands for:
- Volatility – the speed and magnitude by which change happens within an environment.
- Uncertainty – the unpredictability of events and outcomes.
- Complexity – intricate interdependencies and challenges within any given situation.
- Ambiguity – the lack of clarity about how to interpret events or situations.
So it’s time to really hone in on what employers are looking for and, in particular, the most in demand skills in 2026.
The top 10 most in demand skills in 2026
1. Change leadership
With such a rapid pace of change, covering the adoption of AI, new operating models, and ESG compliance (adhering to standards relating to environmental, social, and governance practices), organisations are in a near-constant state of flux and transformation. What is required is leaders who can cope with change and lead the business through without losing staff. It’s a tricky tightrope to walk.
UK employers are constantly showing that change fatigue and gaps in middle-management capabilities act as barriers to change. Restructuring activities and redeployment are key to combating this, as failed transformations can cost businesses money that they just can’t afford to see disappear down the drain.
2. Strategic thinking
With automation handling a lot of routine duties, workers must pivot towards focusing on commercial decision-making, judgement, and prioritisation. UK businesses report good operational skills but weaker strategic capabilities, especially in SMEs and scale-ups. Concentrating on strategic thinking skills will give an improved ROI and more confident decision-making abilities in markets that are uncertain.
3. Workforce planning
It’s all about forward thinking, and realising how your workforce can work at its optimum level. This is where career path frameworks come into their own. Skills shortages are structural, so employers need to anticipate those skill gaps in existing employees, rather than just reacting to recruitment. With an ageing workforce, there is a pressure on reskilling workers, securing internal mobility, and succession planning. Thinking about the future, not just the here and now, will reduce the dependency on trying to hire external talent, while also supporting internal progression.
4. Emotional intelligence
Previously dismissed, largely due to it being seen as a vague soft skill without any quantifiable importance, emotional intelligence is one of the most in demand skills in 2026. That’s because dealing with hybrid or remote working, employee burnout, and multigenerational teams requires a high degree of this skill, which recognises, understands, manages, and uses emotions effectively to guide thinking, behaviour, and relationships. With absences due to mental health issues on the rise, and 41% of respondents citing mental ill health as the reason for long-term absence, it’s time to approach this more intelligently. This will lead to higher engagement and retention, along with stronger line management capability.
5. Clear communication
Along with emotional intelligence, communication is key to moving businesses forward as it underpins innovation and productivity. It’s the foundation for everything, no matter what level you’re at, because being articulate builds trust, strengthens workplace relationships, improves teamwork and staff morale, and reduces errors as instructions are more clearly given and received.
It’s no good just sending a message; you need to make sure it’s being heard and fully understood. Listening and expressing yourself fluidly makes all the difference, whether you’re bouncing ideas off colleagues, connecting with clients in different time zones, or explaining a complex idea to your supervisor. Research from outdoor education provider Inspiring Learning has shown that employers are facing a soft skills crisis, with 52% saying they want to see a higher degree of effective communication from employees and noting that 37% of Gen Z workers lacked decent communication skills.
6. Adaptability
Being adaptable, being able to change with the times, is crucial in the workplace in 2026. With jobs changing faster than you can say, “You’re hired,” it’s vital that workers are able to embrace change and flourish in new environments. This is especially true in the era of lightning-fast technological change, elevating the skill of adaptability into one of the most prized competencies across different industries and roles. As one of the most in demand skills in 2026, this one improves the resilience of the workforce while reducing redundancy costs.
7. Lifelong learning
The ability to keep learning and growing professionally, proactively seeking knowledge, and demonstrating a growth mindset, is of huge value to any employer. Differentiating yourself from others by quickly mastering new systems and industry requirements will mean you can add immediate merit to a project right from the very start.
8. Critical thinking and problem resolution
Identifying the root cause of a problem, then adapting any viable solutions accordingly, is increasingly a priority when hiring talent, due to companies facing disruption, uncertainty, and shifting market conditions. Accountancy firm AAT released a report revealing that 38% of UK recruiters cited critical thinking and problem solving among the most in demand skills in 2026, showing that the job market is crying out for employees who can analyse complex challenges while delivering innovative solutions.
9. Cross-functional collaboration
What’s needed in 2026 is collaboration between functions and departments, not simply within them – that’s just not enough anymore. The problem is that UK businesses often report silos between operations, technology, HR, and finance, creating teams that operate independently from the rest of the company. They are only focused on their own processes and goals, without any collaboration with other departments. This can lead to a reduction in productivity and efficiency as the right hand doesn’t know what the left hand is doing.
10. Talent development and retention
People are the key to a business. Developing them, with career progression frameworks, mentorship programmes, and retention schemes, is critical, as leaders must nurture people, not just manage output. With a skills shortage rife, it’s seen as best practice to grow your own talent within. This leads to more comprehensive succession planning and improved staff engagement, as employees can see that their employers care about their welfare and upward trajectory.
The 5 most in demand skills in 2026 for the UK tech industry
As mentioned earlier on in this article, tech skills are probably the most sought after skills nowadays. So let’s take a look at which ones particularly resonate with UK employers, while giving a heads up to employees who want to learn and grow within the tech industry.
1. AI literacy
In this brave new world of ours, where artificial intelligence is everywhere, it’s best to take the option of, “if you can’t beat it, join it”. With a leap from 4 million to 7 million users of GenAI in the UK workplace in a year, it’s clear that AI is here to stay and that its use is only set to increase. To get that edge on your competitors, it’s worth leveraging AI tools, automating processes, and supporting digital transformation projects. It’s gaining that understanding of AI tools, workflows, and applications across business functions that will set you apart from the rest.
2. Data analysis
Data professionals – those engineers, scientists, and analysts – often form the backbone of a business these days. With data at the forefront of the AI revolution, it’s not surprising that having the know-how to keep a company’s data easily accessible, while remaining resolutely protected, is of the utmost importance. This also means making sure that data is easy for machines to handle, while also being accurate, secure, and bias-free.
3. Cybersecurity
We’ve all heard about the big names which have fallen foul of cyber crime, meaning their systems weren’t usable for days – or even months – and customers were in the dark about what was happening. That’s why being on top of cybersecurity architecture is one of the most in demand skills in 2026. Cyber threats are on the increase while regulations are being tightened, so cybersecurity skills are in high demand, with experts securing customer data, protecting systems from attacks, and ensuring regulatory compliance.
4. Software and full-stack development
It’s official – software development professionals are among the occupations most in demand, according to the government’s occupations in demand data, with 533,000 workers in vital roles. Full-stack developers are especially valued, as they help companies to speed up product development cycles. They are also seen as cost-effective, because they can offer broad technical capabilities without the need to hire multiple specialists.
5. UI and UX design
It’s a competitive world out there and every business is competing for user attention, willing to stump up a load of cash for designers who can deliver that unique experience. This is where UI (user interface) design and UX (user experience) design comes in, with the former concentrating on how products look and feel, and the latter on how people interact with products. Professionals who possess these skills understand how people tick and what they think, which can lead to improved customer retention, a boost in revenue, and heightened customer satisfaction – all key to the running of a successful business.
Key takeaways on the most in demand skills in 2026
2026 is all about being prepared, while trying to pre-empt what the job market is doing and where it’s going. Seeking out those employees with the above skills is a good start. There is a skills gap within the UK market, driven by rapid digital growth and major shifts in the labour market. Technical skills combined with sought-after soft skills are in high demand, with companies leaning more towards adopting a skills-based hiring approach as opposed to focusing on the qualifications on a CV.
For HR departments and business leaders, the strategic path is clear:
- Build talent from the inside with skills that have technical depth combined with the human touch.
- Invest in training that boosts both soft and hard skills at the same time.
- Implement both of these points for more effective hiring, a reduction in expensive turnover, and an alignment of workforce capacity that shows long-term resilience.
If your organisation is wanting to move into creating a job architecture system, where all roles sit within a structured framework, or is considering outplacement services, contact us at the earliest opportunity to find out more.
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