17th Feb 2026
Techyard News
The UK’s labour market is entering 2026 with a mixed set of economic signals. Overall employment growth has slowed, and broader hiring markets remain cautious amid cost pressures, new employment laws and reshaped business priorities. However, within this landscape there are pockets of resilience and growth (particularly in the data, AI and technology space) that are worth understanding for businesses planning their hiring strategy this year.
One of the most notable trends shaping the UK’s job market is the increasing prominence of AI and tech skills across sectors beyond traditional technology firms. For example, the financial services sector alone saw a significant rise in job vacancies in 2025, driven not by traditional banking roles, but by demand for software, data reporting, regulatory and AI-related expertise. According to the London Employment Monitor from Morgan McKinley, AI, data and regulatory skillsets contributed to a 12 per cent increase in vacancies in financial services during 2025, a trend that is expected to continue into 2026.
This shift reflects a broader strategic reorientation, whereby businesses in sectors such as finance are increasingly in competition for talent capable of building, integrating and governing advanced AI systems, managing massive data sets and navigating complex regulatory environments. As organisations seek to balance innovation with compliance, the emphasis on data engineers, AI specialists and tech risk professionals has also remained resilient despite slower overall hiring activity.
The growth in AI-related job postings is not confined to financial services alone with broad labour market data from sources such as Indeed’s 2026 UK Jobs & Hiring Trends Report showing that AI mentions in job listings (as a proportion of all UK postings) has reached its highest share yet, outpacing peer economies including France, Germany and the United States. This suggests that demand for skills in data architecture, analytics, software development and IT solutions is becoming more embedded across the economy as a whole.
Despite this upward pressure on specialist demand, the overall macro picture is one of cautious optimism rather than broad expansion. Employment experts have described 2026 as “difficult” for the wider labour market, with cost pressures and economic subduedness reshaping hiring patterns across many sectors. Against this backdrop, the resilience seen in data and AI talent markets stands out, businesses that understand where demand is concentrated will be better placed to secure the skills they need.
For candidates focused on building or advancing careers in data and AI, these trends offer both opportunity and challenge. The continued strength of demand for specialist skillsets underlines the importance of developing capabilities that align with organisational priorities, such as AI integration, data governance, cloud engineering and automated reporting. But at the same time, slower overall hiring means that the candidate experience can be more competitive and selective, requiring strong positioning, clarity of skill demonstration and targeted career planning.
Looking ahead, 2026 is set to be another year where businesses must divide their talent investment carefully. Those that prioritise data and AI competency not only gain access to emerging opportunities, but can also build internal capability that supports longer-term transformation. For recruitment teams and hiring managers, this means thinking strategically about not just filling roles, but about developing long-term pipelines in areas such as AI engineering, data science, analytics and compliance.
How TechYard Can Help
At TechYard, we specialise in helping organisations navigate exactly these kinds of market dynamics. By focusing on data and AI talent (including engineers, architects and specialists across emerging platforms) we support businesses in building the teams they need to compete and innovate. Whether you’re looking to strengthen capability in financial services, technology-led transformation or analytics-driven decision-making, our deep market insight and specialist focus means you can access the right professionals at the right time.
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