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Opinion

January job search trend – are you ready?

By BHSF | December 12th, 2025

January Job Trends around the corner

January Job Trends around the corner

January has always been a peak period for recruitment. Fresh budgets, new projects, and ambitious growth plans mean HR teams are under pressure to secure the right talent quickly. For job seekers, it’s the perfect time to make a move too, but the hiring landscape in 2026 looks very different from previous years.

Vacancies have fallen 12% year-on-year to 723,000, below pre-pandemic levels, while unemployment sits at 5.0%, affecting 1.79 million people. Yet 70% of employers report difficulty finding skilled candidates, creating a paradox: fewer jobs overall, but fierce competition for talent with the right capabilities.

This is where an organisation’s Employee Value Proposition (EVP) becomes important, both to those seeking roles and recruiters. EVP is the unique mix of benefits, culture, and experiences an organisation offers employees in exchange for their skills and contributions. It goes beyond salary to include flexibility, wellbeing support, career development, and purpose. In a market where 86% of UK workers demand flexible hours, a strong EVP is a competitive advantage for employers and a key factor for candidates choosing their next role.

Why January still matters

January is often the time when employees, motivated by the ‘new year, new me’ mindset, start looking for new roles. In response, organisations post vacancies ahead of the new financial year, creating a surge in applications and added pressure to fill positions quickly.

However, this influx doesn’t guarantee easy hiring or quick job offers. The market is highly mobile, with one in three UK workers planning to change jobs by 2026, and expectations have shifted dramatically. Hybrid working is now the norm for 28% of employees, and 86% demand flexible hours, making flexibility and wellbeing central to decision-making. At the same time, AI adoption in recruitment has reached 87% of companies, meaning HR leaders must balance efficiency with fairness, while job seekers need to optimise CVs for automated screening. In short, January is still the prime time for career moves, but success depends on understanding these new dynamics.

Key Trends to Watch

Skills over degrees

Employers are moving away from rigid degree requirements and focusing on practical experience, certifications, and micro-credentials. For HR, this means updating job descriptions and assessment methods. For job seekers, it’s time to showcase skills and measurable achievements.

AI and recruiting

AI is now standard in hiring. 87% of companies use AI in recruitment, speeding up processes but requiring HR to ensure fairness. Job seekers should tailor CVs for software used to automatically manage and filter job applications and highlight quantifiable results.

Flexibility is non-negotiable

Workplace flexibility remains a top priority. 86% of UK workers demand flexible hours, and nearly half would reject a job without them, even if the salary is higher. HR leaders must embed flexibility into EVP, and job seekers should prioritise roles that align with their lifestyle.

Candidate experience counts

Personalised hiring journeys, interactive onboarding, and even gamified assessments are becoming standard. HR leaders should invest in tech-enabled processes, while job seekers should expect more dynamic application experiences.

Mental health matters

Recruitment stress isn’t limited to candidates, it affects HR teams too. Almost 875,000 UK workers experience work-related stress, depression, or anxiety, costing employers up to £45 billion annually. For HR leaders, this means wellbeing must be a core part of talent strategy, not an afterthought. Supporting mental health during recruitment can improve candidate experience, reduce burnout among hiring teams, and strengthen your employer brand.

This is where proactive support matters. BHSF’s Employee Assistance Programmes provide confidential counselling, mental health resources, and practical tools for employees and HR teams alike. Resilience is essential part of being a healthy workforce and a successful recruitment process.

For job seekers, the pressure of finding a new role in a competitive market can be overwhelming. Long application processes, AI-driven screening, and uncertainty all add to stress levels. Taking time out with regular breaks, not putting too much pressure on individual applications and recognising that a rejection of an application is not a comment on you as a person will help.

What’s the cost of recruitment for businesses?

In 2026, the average cost of hiring a single employee in the UK is estimated at £6,000 to £6,500 for standard roles, rising to £19,000 or more for managerial positions when advertising, HR time and onboarding are included. For specialist or senior hires, costs can climb significantly higher, especially when external agencies are involved.

Hidden costs add even more pressure. Lost productivity during notice periods, training and the time it takes for a new hire to reach full effectiveness can push the total cost above £25,000 per employee, and for senior roles it can reach £40,000 to £100,000.

Recruitment agency fees remain a major factor, typically 15 to 25% of the candidate’s first-year salary, meaning a £40,000 hire could add £6,000 to £10,000 in fees alone.

The cost of a bad hire is even more significant. Research suggests it can reach three times the employee’s annual salary, once wasted salary, rehiring and the impact on team morale and productivity are considered. For a mid-level role, that could mean £100,000 or more.

For HR leaders, these figures highlight the importance of strategic workforce planning and retention initiatives. Investing in robust recruitment processes, a clear EVP and wellbeing support is not only good practice but a way to protect the bottom line.

Conclusion

The January job market in 2026 is full of opportunity and challenge. For HR leaders, success depends on balancing speed with strategy; building a strong EVP, embracing technology responsibly, and prioritising wellbeing to protect both people and budgets. For job seekers, understanding these trends means approaching the market with confidence, focusing on skills, flexibility, and resilience. Whether you’re hiring or applying, preparation is key. The future of work is here: make sure you’re ready.

Sources

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