LONDON, Jan. 20, 2026 /PRNewswire/ -- In a world of rapid technological change, countries that combine innovation and labour market flexibility are best placed to adapt and thrive in a changing economic landscape. A new global report from Hays reveals where businesses can find this dual advantage and why it matters.
The Hays Global Talent Tracker, developed with Oxford Economics, offers a comprehensive view of labour market dynamics across 35 countries, assessing hundreds of indicators from workforce participation and skills development to legislative flexibility and tech talent availability. The analysis shows that flexibility without innovation creates companies that are quick to respond to market changes, but struggle to create truly cutting-edge products and services, whereas innovation without flexibility slows progress, making the combination essential for future-ready economies.
In the UK, innovation remains a core strength, underpinned by world-class research institutions, a thriving tech sector and strong investment in AI and digital services. However, labour market rigidity and persistent skills shortages, particularly in STEM and digital roles, pose challenges when it comes to agility. To stay competitive, UK businesses must balance their innovation advantage with greater flexibility, such as targeted upskilling and flexible work patterns, ensuring they can adapt quickly to disruption and harness emerging technologies.
Talent Market Flexibility measures how quickly labour markets can respond to evolving business needs, enabling rapid hiring, workforce mobility and flexible work models. Markets with employer-friendly regulations and strong redeployment capabilities rank higher. China and Thailand lead with streamlined hiring processes and a strong supply of temporary talent, allowing businesses to scale quickly.
The UAE stands out for efficient visa processes and flexible contract structures, though protections vary. Mature markets such as the Netherlands, UK, and Switzerland score lower due to rigid frameworks that support stability but limit agility.
Talent Innovation evaluates a country's innovation ecosystem, including R&D investment, tech adoption, digital skills and collaboration between academia and industry. Leaders invest in AI, automation and digital literacy, to drive long-term transformation.
The US, Singapore, UK, and Ireland exemplify innovation readiness. The US leads with world-class research institutions and deep investment in frontier technologies. Singapore combines robust digital infrastructure with government-backed initiatives, while Ireland's STEM talent and business-friendly policies position it as a European hub for digital services.
Cost-competitive markets such as Chile, Romania and Brazil lag behind. Chile offers affordability but lacks the R&D investment; Romania faces systemic challenges like brain drain and low innovation funding; and Brazil struggles with uneven digital fluency and infrastructure gaps.
Singapore stands out for balancing innovation with flexibility, acting as a strategic hub for tech-driven growth and an ideal "sandbox" for testing new ideas at scale.
Japan tops the overall index but faces ageing demographics and rigid labour frameworks. Nordic countries remain innovative powerhouses thanks to education and R&D, however, high costs in hiring talent and strict labour laws limit agility. Emerging markets like Brazil and India hold untapped potential but are still developing, while mature economies must overcome structural barriers to stay adaptive.
To seize opportunities in today's ever evolving market, business leaders must recognise the dual imperative: investing in technology and digital skills while maintaining the ability to adapt to rapid change.
Dirk Hahn, Chief Executive Officer at Hays comments:
"Innovation and flexibility are the twin engines of growth in an era of continuous change. Markets that combine both give businesses the power to scale rapidly, adapt to disruption and seize opportunities as they emerge.
"With generative AI and digital platforms accelerating change, organisations need ecosystems built for speed and resilience. The Hays Global Talent Tracker helps you identify the optimal location and skills development strategies for your critical talent."
The Hays Global Talent Tracker reveals which markets offer this dual advantage, providing guidance for organisations seeking to build resilient, future-ready workforce strategies.
About Hays
Hays plc (the "Group") is the world's leading specialist in recruitment and workforce solutions. The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 30 June 2025, the Group employed over 9,500 staff operating from 207 offices in 31 countries.
Photo - https://mma.prnewswire.com/media/2864488/Hays_Ten_best_performing_Countries_Final.jpg
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/hays-future-ready-nations-where-talent-can-pivot-and-progress-302664624.html
