We canvassed the companies and candidates we work with, to get an insight into the current market as we enter the second quarter of the year. In addition, with AI being cited as the reason for a series of major job cuts within the tech industry, we wanted to gain an update on the level of AI adoption within the companies we work with, as well as understanding how AI is starting to reshape workforces, and how both companies and employees are adapting. If you would like to discuss anything in this report with us further, please get in touch.
Hiring Plans
Perm
Highest – 95% – April 22
Lowest – 46% – April 20
Contract
Highest – 30% – Jan 22
Lowest – 5% – Oct 23 & Oct 25
This time last year
(Apr 25)
Hiring permanent staff in the next 3 months – 57%
Hiring contract staff in the next 3 months – 11%
Each quarter, we ask our clients about their hiring plans – for both permanent and contract staff – over the next 3 months. The graphics above show the responses we received, compared to the previous quarter. For added context, we have also included the figures for the same time last year, as well as the highest and lowest levels recorded.
For those clients that said they did intend to hire permanent staff over the next 3 months, we asked them what was driving that hiring, as well as about the seniority levels of the positions they would be looking to fill.
What is driving your hiring?
What seniority levels will you be looking to recruit? (Clients can select multiple options)
Once again, we asked those candidates currently looking for work, for the level of seniority they consider themselves to be, in order to see how that matches with current client demand.
We also surveyed the candidates on our database with the following questions:
Will you be actively looking for work in 2026?
Will you be actively looking for work over the next 3 months?
As we start the new fiscal year, the picture isn’t all that different from last quarter. Planned permanent hiring has fallen a little, but is consistent with recent levels; the demand for, and available mix of, candidates is broadly the same, and whilst the percentage of candidates planning to look for work has fallen, that could simply reflect the fact that some of those that were looking, have managed to secure a new role. The picture, then, remains of a market still not ready to “kick on”, which is consistent with recent economic growth figures and projections.
Graham Bruce, Director
Market Uncertainity
We first introduced the question, “Over the next three months, do you anticipate making any redundancies?” in the summer of 2022, as recession concerns intensified and business confidence began to weaken. While the UK has so far avoided a sustained downturn, the outlook remains fragile. Persistent inflationary pressures, higher borrowing costs, and ongoing geopolitical tensions continue to weigh on growth and sentiment, both domestically and globally. Against this backdrop of sustained uncertainty, we are continuing to track how these conditions are influencing workforce decisions across the organisations we support:
Have you had to make any redundancies in the past 3 months?
Do you envisage making any redundancies in the next 3 months?
As well as asking the companies we work with about their hiring intentions, we also continue to track the number of vacancies available in the UK, as a market indicator. The following, is a graph showing data collated by the Office for National Statistics
The latest data points to a clear deterioration in market sentiment. Both reported and anticipated redundancies have moved in the wrong direction this quarter, with notable increases in both companies having made recent redundancies, and those expecting to do so. Together, these shifts suggest that caution is once again creeping into workforce planning.
While ONS vacancy data has broadly stabilised over the past year following a prolonged decline, the most recent figures hint at a slight downward movement. Anecdotally, conversations with clients in recent weeks reinforce this more cautious outlook. Many are expressing short-term uncertainty around hiring, driven in part by broader global economic shocks, particularly volatility in oil prices and all the second order impacts that will have. While these factors are not yet fully reflected in the vacancy number data, they may indicate that hiring levels have further to fall before any meaningful recovery begins.
Aidan Snow, Account Manager
AI Adoption and a Changing Workforce
Although AI is nothing new (the term was first coined in 1955!), it was arguably not until the release of ChatGPT in late 2022, that many people knowingly and directly began using a generative AI tool for the first time. Since then, worldwide forums have taken place on the risks, headlines have warned of catastrophic job losses, and billions of pounds of investment has been poured into companies developing AI tools and technology. But how is the adoption of AI affecting businesses and employees? Is Twitter co-founder Jack Dorsey correct when he stated recently that artificial intelligence (AI) “fundamentally changes what it means to build and run a company”, and if so, what does that mean in practice?
We first surveyed our clients on some of these questions in the summer of 2023, before following up a little over a year later. Given the pace of change, we wanted to explore how things were evolving.
Do you currently use any form of external generative AI tools within your business?
Over the next 2 years, how do you expect AI to affect hiring levels?
Over the next 5 years, what do you think AI will do to your workforce size?
The responses we received suggest that AI adoption is exposing a broad set of skills gaps, centred predominantly on practical and responsible usage. Many organisations highlighted a fundamental need for basic AI literacy – understanding what AI can do, where it can be applied, and how to use tools effectively – alongside more specific skills such as prompt engineering. At the same time, a number of responses highlighted concerns around data confidentiality and understanding the ethical and legal implications of AI usage. In response, most organisations are looking to provide relevant training (both internal and external), workshops, and knowledge-sharing initiatives, often supported by external consultants. Others are embedding AI capability-building into management objectives or formal policies, with a few introducing training as a prerequisite for tool usage.
Not only risk, but opportunity
While much of the mainstream media narrative around AI continues to focus on potential downsides – ranging from job displacement to wider societal disruption – the reality is more nuanced. Alongside these concerns, there is growing recognition of AI’s capacity to drive productivity, unlock new commercial opportunities, and support innovation.
For many organisations, the conversation is shifting from if AI will have an impact to how it can be harnessed responsibly and effectively. With that in mind, we asked our clients to share their perspectives on where they see the most significant opportunities for AI within their businesses:
What is the biggest opportunity AI creates for your organisation?
We have seen an enormous increase in the rate of AI adoption across our client base, rising from just a third of businesses in 2023 to nearly 90% by April 2026, highlighting how quickly it has become part of how businesses operate. However, despite this widespread use, the impact on the workforce remains uncertain. In the short term, businesses are split on whether AI will reduce hiring or make little difference, while over a longer period uncertainty increases further, with many still unclear on how workforce size will evolve. Although AI is not yet widely seen as creating significant skills gaps, a notable proportion of organisations are already feeling its effects, pointing to a growing need for upskilling. What is clear is that businesses are primarily using AI to improve efficiency, save time and reduce low-value tasks, suggesting the focus is on boosting productivity rather than replacing people, even as its full impact on the workforce continues to take shape.
Megan Robertson, Manager, Account Management
To better understand how artificial intelligence is shaping the workforce from an individual perspective, we surveyed our candidates on their experiences and attitudes towards AI in the workplace. The questions explored not only current usage, but also how AI is influencing skills development, and perceptions of job security:
How concerned are you about AI impacting your job security?
The data highlights just how significant an impact AI is already having from a candidate perspective. Nearly half of respondents report using AI tools daily, while a combined 55% say it has already changed the skills required in their role. Alongside this, close to half express concern about AI’s impact on their job security, reinforcing that this is not a future challenge, but the current reality for many in the workforce.
Encouragingly, the response from candidates has been proactive. Over 70% report having learned AI-related skills in the past 12 months, demonstrating a strong willingness to adapt to changing demands. This suggests that while technology is advancing rapidly, the workforce is capable of evolving alongside it.
Jonathan Campion, Director
Thoughts from our Managing Director
The overall sense I get from our latest survey data is of a fragile recovery stifled. Our survey from the start of the year suggested tentative optimism and a desire for growth, but as we move into Q2 – often a buoyant period from the release of new budgets/projects – we see a picture of planned hiring that is broadly flat, or indeed, potentially declining when viewed in conjunction with the ONS data. AI adoption is clearly gathering pace, but it’s clear that the focus is currently on upskilling existing workers, rather than hiring new ones. With renewed global economic uncertainty as a result of the tensions in the Middle East, the signs are there that this could turn out to be another tricky year for both businesses and jobseekers.
Adam Palmer, Managing Director
Who are Corriculo?
At Corriculo we have a passion for doing recruitment differently. We strive to deliver long-lasting relationships between candidate and recruiter that make a continued difference. Our clients benefit from over 50 years’ combined recruitment experience, specialist sector knowledge and our extensive network of industry experts.
Our mission is that by doing recruitment differently, we provide authentic, innovative and transparent recruitment solutions for clients & candidates all over the UK for permanent and contract positions. Our values are a key part of why we do what we do and we are determined to demonstrate these in all aspects of our work.
Accountability: We promote a culture of ownership, where employees are empowered to take responsibility for their work and are held accountable for delivering on their commitments.
Sharing Knowledge: Knowledge is a valuable resource that can be leveraged to drive innovation and improve performance.
Continuous Improvement: We constantly seek new ways to improve our processes and approach, in order to produce a high quality service for clients and candidates alike.
Honesty & Integrity: By prioritizing a culture of trust and accountability, we continue to build a strong reputation for ethical behavior and trustworthiness, both internally and externally.