AI skills demand hits record high despite broader UK hiring slump

British hiring fell in the first six months of 2026 with job postings for graduates at their ​lowest since 2020, according to a survey from recruitment ‌platform Indeed that also showed demand for AI skills hit a record high.

“The UK’s labour market is under sustained ​pressure. Hiring demand is falling across most parts of ​the economy, while posted wage growth is gradually cooling,” ⁠Indeed senior economist Jack Kennedy said.

“That is particularly challenging ​for graduates and younger workers, who are competing for fewer ​opportunities to gain an initial foothold.”

  • Job postings fell by 11 per cent between the start of 2026 and July 17 and were 32 per cent lower than ​before the COVID-19 pandemic
  • Advertised wage growth cooled to 3.9 per cent annually ​in the three months to June, the slowest since February 2022
  • Graduate job ‌postings ⁠were down 7 per cent year-on-year as of July 10 and were at their lowest level for the time of the year since 2020
  • Summer job postings, which cover temporary and seasonal roles, ​were the ​weakest in four ⁠years
  • At the end of June, AI or related tools and programmes appeared in 9.4 per cent of ​UK job postings, a record high
  • Britain has ​faced a ⁠worsening youth unemployment crisis since the pandemic, with more than a million 16-to-24-year-olds not in education, employment or training, according ⁠to previously ​released data
  • Last week, new Prime Minister ​Andy Burnham announced plans to align technical education and training for young people ​with local employment needs.