The UK employment landscape is experiencing seismic shifts amidst economic uncertainties and global conflicts. Whilst this backdrop has fuelled a highly competitive hiring environment – especially for in-demand roles and AI-related skillsets – organisations have opportunities to rethink their value proposition and leverage data-driven strategies. By doing so, they can better source and retain top talent despite the challenges.
The Spring/Summer 2024 Europe Labour Market Report* analysis delves into the intricate dynamics shaping employment markets across the UK and Ireland, offering invaluable insights for organisations navigating the ever-evolving talent landscape. Here are a few of the notable trends in UK and Ireland:
Macro Environment
Economic turbulence stemming from global conflicts, uncertainty, surging energy costs, and fluctuating inflation and interest rates has fuelled significant volatility in the UK and Irish employment markets. Rising costs have contributed to a decline in hiring activity amidst the challenging landscape.
In the UK, the job market has become increasingly competitive due to a concurrent rise in available workers and fall in vacancies. Data from KPMG and the Recruitment & Employment Confederation revealed a 5% quarterly decline in estimated UK vacancies for Q4 2023 – the 18th consecutive period of decline, continuing into January 2024.
Meanwhile, Ireland has experienced a deceleration from the 2021-22 hiring boom across key sectors like technology and pharmaceuticals. High interest rates have slowed investments in both nations, impacting liquidity and minimising growth opportunities across industries.
Skills in Demand
A surge in AI technology adoption across the UK has driven up demand for professionals skilled in AI and machine learning (ML). This aligns with the government’s ambition to position the nation as a global leader in unlocking AI’s potential to enhance quality of life. The sought-after skills of software sales, cloud services, and managed security reflect companies’ strategic priorities in navigating today’s technology-centric marketplace.
In Ireland, a housing crisis has fuelled a surge in demand for construction workers. Key trends within other sectors include: a high need for technology engineers, especially in validation and automation; an emphasis on microbiology and chemistry method testing skills within biopharmaceutical operations; and an increased requirement for professionals with expertise in data analytics, data science, and agile project management methodologies across various industries.
Remuneration & Benefits
Wage growth in the UK rebounded to 6.4% year-on-year in January 2024 after a 3.6% decline in Q3. Conversely, Ireland experienced more moderate growth of 3.7% by year-end 2023, below the Eurozone average.
For candidates, remuneration is not the sole deciding factor. Remote work policies, holiday entitlements, pension contributions, and career progression opportunities are crucial considerations in maintaining a healthy work-life balance. Flexibility plays a pivotal role, with 66% of organisations in the region acknowledging the need to offer flexible working arrangements when advertising roles – underscoring its growing importance in attracting and retaining talent.
*Magnit’s Spring/Summer 2024 Europe Labour Market Report
