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Hiring confidence surges as employers plan for growth – ManpowerGroup

47% of employers were expanding and 26% were moving into new areas that needed more staff.

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Hiring confidence surges as employers plan for growth – ManpowerGroup
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Research from ManpowerGroup found a sharp rise in hiring confidence across the UK for Q2 2026, with a net employment outlook of 27%. 

This was a 125% increase on the previous quarter and one of the biggest quarterly rises in five years. 

47% of employers were expanding and 26% were moving into new areas that needed more staff.

Michael Stull, managing director at ManpowerGroup UK, said: “We’re seeing cautious optimism in the labour market. 

“Beyond the rise in hiring confidence, there are early signs of recovery coming through in other parts of the economy. 

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“Employer sentiment is improving, GDP expectations are firming up and housing market indicators are stabilising.”

Stull added: “These are the kinds of movements that typically show up before we see shifts in real hiring activity. 

“Having said this, the current geopolitical uncertainty may contribute to hesitancy, however the direction is encouraging and businesses have become used to navigating complex environments.”

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The UK moved up to 23rd out of 42 global markets and 7th out of 19 European markets, with the strongest quarter-on-quarter growth in Europe. 

The outlook was above the European average (21%) and just below the global average (31%), similar to Portugal (29%) and Spain (28%), and ahead of Italy (22%).

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All major private sector industries reported stronger hiring plans. 

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Tech and IT services saw the biggest jump at 44% (up 100% quarter-on-quarter), followed by finance and insurance at 38% (up 153%). 

Manufacturing, information, professional services, trade and logistics, and construction and real estate also saw solid gains. 

Public sector, health and social services (12%), and hospitality (6%) improved from lower levels but were still below last year.

The data showed net employment outlooks for Q2 2026 as follows: construction and real estate 29%, finance and insurance 38%, hospitality 6%, information 38%, manufacturing 34%, professional, scientific and technical services 34%, public sector, health and social services 12%, trade and logistics 27%, utilities and natural resources 25%, automotive 15%, and tech and IT services 44%.

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Hiring sentiment improved across nearly every region, with the West Midlands seeing a 700% quarterly increase and the South West up 300%. 

The North East, Eastern, North West, Yorkshire and Humber, and London also improved. 

Wales (9%) and the South East (14%) were up on the quarter but still below last year.

Stull said: “This isn’t a London‑only story. Momentum is building across the industrial heartlands and coastal economies. 

“Some areas are climbing back from a lower starting point, but the direction of travel matters as much as the level. 

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“Taken together, these signals point to a recovery that is broad, if uneven – and employers are starting to plan with more confidence as a result.”

Mid-sized businesses had the strongest outlook, especially those with 250-999 employees (37%) and 50-249 employees (33%). 

Gains were also seen among smaller firms (10-49 employees at 21%), firms with less than 10 employees (18%), and those with 1,000-4,999 employees (21%). 

The only group with a negative outlook was the largest employers with 5,000 or more employees (-4%).

Stull added: “As sentiment cautiously lifts, employers need to balance retention with hiring. Skills shortages remain high so the most sought-after candidates will be in demand. 

“In a recovery that’s broad but uneven and driven largely by mid‑sized Britain, the organisations that will come through strongest are those that invest in their people and carry this shift from pessimism to progress into how they plan for the months ahead.”

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