Industries with the Highest Labor Costs in United Kingdom in 2026

• 1. Business Process Outsourcing Services in the UK

  Labor Costs for 2026: £29.8B

  Business process outsourcing (BPO) companies provide services to clients in all sectors of the economy, with the financial services and public sectors being particularly important markets. Expanding IT adoption and government expenditure have incentivised businesses to invest more heavily in IT systems and upgrades, supporting demand for BPO services. Industry revenue is expected to contract at a compound annual rate of 3% over the five years through 2024-25 to £73.4 billion, including estima...

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• 2. Charities in the UK

  Labor Costs for 2026: £29.6B

  Industry revenue is expected to contract at a compound annual rate of 1.7% over the five years through 2024-25 to £61.8 billion. Industry growth has been constrained by falling funding from the EU because of Brexit, with the UK Shared Prospensity Fund not plugging enough of the whole. High-profile scandals have prevented major players from claiming government funding and reduced support from the public. In combination with public funding cuts, demand for social services has risen. Cuts to ove...

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• 3. Construction Contractors in the UK

  Labor Costs for 2026: £27.9B

  Construction contractors are active across building construction and civil engineering markets. Despite being remunerated for completing new building and infrastructure construction contracts or fulfilling maintenance, repair, renovation and remodelling contract obligations, the spectrum of services offered by civils and general building contractors in this industry is multifaceted. Some contractors focus on new dwellings construction, while civil engineering specialists afford clients servic...

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• 4. Universities in the UK

  Labor Costs for 2026: £25.0B

  Over the five years through 2024-25, the Universities industry's revenue is expected to grow at a compound annual rate of 2.1% to £56.5 billion. The increase in tuition fees to £9,250 in 2017-18 has been an important driver of revenue growth. However, with tuition fees frozen since then, inflation and particularly high inflation in the two years through 2023-24 has meant their real value has plummeted. The cap on undergraduate student numbers in the UK was lifted in 2020-21, leading to a rise...

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• 5. Management Consultants in the UK

  Labor Costs for 2026: £24.5B

  In recent years, management consultants have been reaping the rewards of swelling demand for IT consulting services. While expanding business activity and spending has fuelled management consultants’ revenue during upbeat economic conditions, the provision of countercyclical services has supported revenue during periods of economic instability. They’ve also benefitted from regulatory changes, as businesses have required help to fine-tune their strategies and operations following Brexit and re...

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• 6. Temporary-Employment Placement Agencies in the UK

  Labor Costs for 2026: £24.0B

  The Temporary-Employment Placement Agencies industry revenue is forecast to decline at a compound annual rate of 1%  to £56.7 billion over the five years through 2024-25. The COVID-19 outbreak meant key employers of temporary workers in the sports and music events spaces completely shut their doors and businesses froze hiring, reducing clients for agencies. Sign-ups for temporary employment declined, hitting revenue in 2020-21. Companies pressed play immediately on hiring as the economy reope...

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• 7. Supermarkets in the UK

  Labor Costs for 2026: £22.5B

  The Supermarkets industry has undergone something of a shift over the past decade – discounters Aldi and Lidl have penetrated the customer base of the traditional “Big Four” supermarkets (Tesco, Sainsbury’s, Asda and Morrisons), with their low prices and improving quality of products resonating with price-conscious shoppers. Over the five years through 2024-25, supermarkets' revenue is forecast to dip at a compound annual rate of 1.1% to £192.1 billion, though it's expected to inch up by 0.6%...

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• 8. Hospitals in the UK

  Labor Costs for 2026: £21.1B

  Hospital services are currently being stretched at the seams as they struggle to navigate financial constraints and workforce shortages while appointment waiting times remain high. Hospitals faced unrivalled pressure during the COVID-19 outbreak and this necessitated the release of significant government funding to help hospitals boost their capacity to treat afflicted patients. According to the King’s Fund, NHS funding rose from £148.9 billion in 2019-20 to £191 billion in 2020-21. Hospitals...

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• 9. Computer Consultants in the UK

  Labor Costs for 2026: £20.4B

  The Computer Consultants industry’s revenue has experienced continued positive growth as technological developments create high demand for their expertise and services. This growth was extreme as workplace operations shifted to become even more digital during the pandemic. In recent years, the industry has faced increasing obstacles due to a highly competitive market, talent shortages and low business confidence caused by an uncertain economic environment cited frequently by consultants as fe...

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• 10. Consultant Engineering Services in the UK

  Labor Costs for 2026: £19.8B

  Over the five years through 2024-25, revenue is projected to dip at a compound annual rate of 0.5% to £69.8 billion, including an anticipated growth of 1.5% in 2024-25. However, this is mainly the result of a sharp drop in revenue in 2020-21, as consultant engineering demand slumped amid depressed business investment and subdued construction activity during COVID-19. Nevertheless, vigorous infrastructure construction activity, including electricity and telecommunications infrastructure constr...

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