Marvin OnumonuThree quarters (75%) of UK employers cut hiring budgets for 2026, according to findings from Robert Walters.
Fewer than one in five (17%) employers said they would train new staff, and more than half (53%) are now holding out for so-called ‘unicorn’ professionals who fit every requirement on the job description.
Daniel Harris, director of Robert Walters London & South East, said: “As economic pressures mount, leaders are prioritising ‘safe’ hires who can deliver immediate impact.
“However, this growing reluctance to invest in training risks putting the next generation of UK talent at risk.”
Rising operational costs, economic uncertainty and increased tax have made employers more cautious in hiring.
The cost of a wrong hire is also up, with 65% of employers stating that changes to the Employment Rights Act – like shorter qualifying periods for unfair dismissal and more day-one rights – meant they increased interview rounds and extended probation periods.
Employment tribunal claims rose 11% between July and September 2025 compared to the previous year.
Harris added: “Employers are tightening their safety nets by applying greater scrutiny and guardrails to hiring decisions.
“This, in turn, is raising the stakes for professionals, placing more pressure on them to hit-the-ground-running and deliver immediate results.”
The Robert Walters 2026 Salary Survey found year-on-year pay rises for mid-level staff in accounting & finance and technology stayed flat at around 4%.
Legal services professionals saw slightly higher increases of about 3-6%.
77% of UK workers said hiring processes are taking longer than last year.
The average time-to-fill is now 40 days, behind the US at 35 days and Australia at 32 days.
Fewer than 5% of candidates are invited to interviews, while 49% of professionals said not hearing back about a role after a week stopped them from pursuing it further.
Harris said: “Stricter cost bases are also influencing wages and, in turn, employers’ abilities to secure ‘unicorn’ hires.
“While in-demand areas such as senior security roles or risk and compliance leadership may represent outliers, when adjusted for inflation, yearly wage increases for many professional roles in 2026 seem to signify market stabilisation rather than any real growth.
“Employers hold many of the bargaining chips in the current hiring market, giving them the confidence to demand more.”
He said: “However, interviews are a two-way process; many top professionals pursue multiple opportunities simultaneously and quickly disengage when hiring timelines are slow.
“We are already seeing the ripple effects of reduced investment in early-careers talent play out, in a trend that will continue to thin out UK talent pools for years to come.
“For businesses to build strong teams capable of achieving long-term success and not just quick wins, they must strike the balance between hiring top talent and also investing in the skills and abilities that support sustained business growth.”
