Our latest Work and Salary Report suggests the Learning and Development sector is entering a period of adjustment rather than expansion. Organisations continue to value L&D, but economic pressure and changing business expectations are reshaping how teams are structured, funded and evaluated.
While demand for capability building, digital learning and AI skills remains strong, tighter budgets, slower hiring and increased redundancies are influencing both career progression and mobility across the profession. For both employers and professionals, the focus is shifting toward measurable impact, efficiency and business alignment.
L&D budgets: pressure remains the key forward indicator
The most significant forward-looking signal in this year’s survey is budget expectation. More respondents expect L&D budgets to fall than to increase in the coming year, indicating a cautious outlook for 2026.
Rather than broad investment programmes, many organisations are prioritising optimisation by making better use of existing platforms, content and internal expertise. This reflects a wider trend across corporate functions where value and accountability are becoming central to decision making.
For L&D leaders, this reinforces the importance of demonstrating business impact, linking learning activity to performance outcomes and aligning closely with organisational priorities.
A more employer-led hiring market
The hiring market has noticeably tightened. Reports of redundancy have increased compared with the previous year and job searches are taking longer, with fewer professionals securing roles quickly.
This does not suggest a collapse in demand for learning. Organisations still require capability development, but hiring is more selective. Employers are focusing on experience, stakeholder management and measurable outcomes rather than expanding headcount.
For candidates, competition for roles has increased. For employers, it creates an opportunity to hire more strategically and define roles more clearly.
From experimentation to implementation: Generative AI in practice
Artificial intelligence has moved beyond theory. Generative AI is now being used practically by many L&D professionals to support content development, research, learning design and workflow efficiency.
The conversation is no longer about whether to adopt AI. The focus is on how to implement it responsibly. Governance, capability building and skills development are becoming central themes as organisations seek to balance opportunity with risk.
This aligns with wider industry research including AI in L&D publish by Donald Taylor and Egle Vinauskaite 2025 showing adoption is growing quickly, although fully embedded use remains limited. The real shift is operational. AI is becoming part of everyday L&D work rather than a future consideration.
Career progression and retention risk
Career progression has become one of the most concerning findings in this year’s report. A majority of respondents now report limited or no opportunity for advancement in their current organisation.
Flatter structures, tighter budgets and fewer new roles mean promotion opportunities have reduced. As a result, many professionals remain in role for longer, not necessarily because they are satisfied but because opportunities elsewhere are less accessible.
This creates a delayed retention risk. When hiring conditions improve, organisations may experience a wave of movement if development pathways are not clearly defined.
Pay and reward: stability over growth
The salary market has cooled compared with recent years. More professionals report salary reductions and fewer have received pay increases. While most respondents feel their salary is broadly fair, a significant minority believe they are paid below the market average
In the current climate, job security and flexibility are often prioritised over salary growth. Clear progression pathways and development opportunities are becoming increasingly important for engagement and retention.
Hybrid working: the debate has largely settled
Hybrid working is now firmly established across the L&D profession. Very few professionals are fully office-based and most respondents consider their current working arrangement appropriate.
The challenge for organisations is no longer location but effectiveness. Maintaining visibility, collaboration and stakeholder relationships in a hybrid environment is now the priority.
For learning teams in particular, organisational presence remains important because influence and credibility are closely linked to stakeholder engagement.
Recruitment channels and professional networks
Recruitment agencies have become an increasingly important route to market, particularly in a more selective hiring environment. As hiring processes become more structured and sometimes confidential, candidates rely more on specialist intermediaries to access opportunities.
Professional networks also remain valuable. Even in a digital hiring market, relationships and reputation continue to influence career movement.
Conclusion
This year’s survey indicates a sector at an inflection point. Learning and Development is not shrinking but it is becoming more accountable. Organisations continue to need capability building, yet investment is increasingly linked to measurable outcomes and business value.
For employers, success will depend on equipping L&D teams with the tools and trust to demonstrate impact. For professionals, the most in-demand skills now combine learning expertise with commercial awareness, stakeholder influence and analytical capability
As we move further into 2026, those organisations and individuals able to evidence value rather than activity will be best positioned to succeed in a more selective and performance-focused L&D market.
Download the full report HERE
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