Make UK Manufacturing Outlook Q3 2026: Orders Up, but Factory Hiring Slows Sharply
Make UK’s latest survey shows confidence and orders improving, but manufacturers are holding back on hiring. Here is what the figures mean for manufacturing jobs.
Factory forums have had a fairly gloomy tone this year, with plenty of people saying they are struggling to find steady work or tired of being asked to do more with less. Make UK's latest Manufacturing Outlook, published on 14 September 2026, helps explain why. Orders and confidence are getting better, but manufacturers are being very careful about taking on staff.
What the Make UK Manufacturing Outlook Shows
The headline is a recovery in mood. Business confidence rose to 6.6 out of 10, up from 6.0 in the previous quarter, and confidence in the wider UK economy rose from 5.0 to 5.7 (Make UK).
Orders are moving in the right direction too. UK orders rose to a balance of +17% over the past three months, up from +12%, and export orders rose to +12% from +8%. Looking ahead, firms expect UK orders at +21% and export orders at +24% over the next three months.
Hiring Has Slowed Sharply
The weak spot is jobs. The employment balance for the past three months fell to +3%, down from +15% in the previous quarter. Firms expect it to recover to +14% over the next three months, but Make UK says hiring intentions have weakened sharply.
Manufacturing vacancies fell to 57,000 in July 2026, from 61,000. The vacancy ratio dropped to 2.0 per 100 jobs, which is still slightly above the long-run pre-pandemic average of about 1.8.
Why Manufacturers Are Cautious About Taking People On
Make UK links the slowdown mainly to rising employment costs, including wage growth and compliance costs linked to the Employment Rights Act. Energy and input costs are weighing on decisions too. Prices are still climbing, with the UK prices balance at +30%, while margins remain under pressure at -16%.
Put simply, many firms have more work coming in but are trying to get it done with the people they already have.
The Forecast for Manufacturing Jobs
The forecast from Make UK and Oxford Economics is the part to watch. It expects manufacturing output to grow by 1.2% in 2026 and 0.3% in 2027, but manufacturing employment to fall by 2.1% in 2026 and 1.8% in 2027.
That does not mean there are no manufacturing jobs. A vacancy ratio of 2.0 per 100 jobs is still a healthy level, and skills gaps remain. It means employers will be choosier, and people with in-demand skills such as maintenance, CNC, automation and quality will have a clear advantage.
Investment Is Picking Up
One bright spot is investment. Intentions for the next 12 months rose to +15%, up from +8%. That matters for jobs over the longer term, because new equipment and automation create demand for engineers and technicians who can install, programme and maintain it.
What This Means for You
If you work in manufacturing, the message is to build skills that make you harder to replace. Multi-skilled maintenance engineers, setters, programmers and continuous improvement staff tend to be the last people firms let go and the first they hire.
If you are looking, our live vacancies and manufacturing jobs hub are good places to start, and our Job Matcher can check a much wider set of UK roles against your CV.
Manufacturing Outlook: Frequently Asked Questions
What is the Make UK Manufacturing Outlook?
It is a quarterly survey of UK manufacturers by Make UK, the manufacturers' organisation, covering output, orders, jobs, investment and prices.
Are manufacturing jobs growing in the UK?
Hiring slowed sharply in Q3 2026. Make UK and Oxford Economics forecast manufacturing employment to fall by 2.1% in 2026 and 1.8% in 2027, even as output grows.
How many manufacturing vacancies are there?
Make UK reported 57,000 manufacturing vacancies in July 2026, down from 61,000.
Why are manufacturers hiring less?
Make UK points mainly to higher employment costs, including wage growth and Employment Rights Act compliance, along with energy and input costs.
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