A Growing Divide in the Job Market
The UK job market is facing a paradox: while 74% of employers report difficulty in finding quality candidates, 64% of jobseekers struggle to find suitable roles. This disconnect, highlighted in research by global hiring platform Indeed, is creating challenges for both sides of the hiring equation.
Surveying over 2,000 UK jobseekers and employers, the study reveals that 56% of employers find hiring more difficult than three years ago, with 45% unable to find applicants with the required skills. Meanwhile, jobseekers cite lack of pay transparency (33%), unrealistic role requirements (28%), and an overemphasis on formal education (18%) as key obstacles.
Skills-First Hiring: A Solution in the Making
To combat hiring difficulties, 38% of employers are refining job descriptions, while 37% are adjusting salary and benefits. One promising approach is skills-first hiring, where employers prioritise candidates’ skills over traditional qualifications.
Currently, only 30% of UK employers have a formal skills-first hiring strategy, yet those who do report significant benefits. Among them, 35% say it has improved innovation by introducing diverse skill sets, while 33% report an increase in quality applicants. Recognising its potential, 26% of employers without a skills-first strategy plan to implement one.
However, a knowledge gap remains: 73% of jobseekers are unfamiliar with skills-first hiring. Many jobseekers (59%) rely on listing their job experience on their CVs, while only 38% highlight specific skills. Notably, 34% believe that better showcasing their abilities could help them avoid unsuitable interviews.
Learning and Development: A Key Hiring Factor
Both jobseekers (65%) and employers (58%) agree that a quality hire brings new capabilities and perspectives to a team. Employers also value a willingness to upskill, with 59% citing it as a key indicator of a strong candidate.
Learning and development (L&D) opportunities are increasingly influential in job decisions. Nearly three-quarters (73%) of jobseekers consider L&D important when evaluating a role, and over half (56%) would accept a lower salary in exchange for career development opportunities. In response, 37% of employers have updated their L&D programmes, while 23% plan to do so.
Despite its importance, almost half (47%) of jobseekers only learn about L&D opportunities during interviews. This suggests that employers may be missing earlier chances to attract talent by not highlighting development opportunities in job postings.
Bridging the Gap: A Call for Better Communication
Danny Stacy, Head of Talent Intelligence at Indeed, acknowledges the hiring challenges facing businesses and jobseekers alike.
“The UK job market is facing significant challenges from both sides of the hiring equation. We’re seeing a clear disconnect—employers can’t find quality candidates, yet jobseekers feel it’s harder than ever to find work. This paradox is creating unnecessary friction in an already challenging landscape,” he says.
He emphasises the need for better communication between employers and jobseekers to resolve these hiring difficulties.
“By improving pay transparency, adopting skills-first hiring practices, and offering strong learning and development opportunities, employers can attract better talent in this competitive market. At the same time, jobseekers who effectively demonstrate their adaptability and relevant skills, alongside a willingness to learn, will gain an advantage in securing their next role.”
As the UK job market continues to evolve, bridging the gap between employer expectations and jobseeker priorities will be crucial in overcoming hiring challenges.
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