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UK – Businesses shed non-core job functions due to economic uncertainty

23 November 2016

British businesses have been shedding non-core job functions in the past six months due to economic uncertainty and in order to focus on roles that directly drive revenue, according to new research from LinkedIn.

The study, based on a sample of LinkedIn’s 21 million UK members between April and October 2016, reveals a net, year-on-year fall in the number of administration (-3.7%) and support (-3.4%) roles in the UK. In contrast, commercially-focused business functions have grown, with product management (+4.1%) and business development (+3.7%) roles recording the biggest net year-on-year rises in headcount.

Businesses in the retail, manufacturing and oil and energy sector have led the charge, cutting the most administration and support roles in the last six months, LinkedIn finds.

“As businesses fight to remain competitive in uncertain times it is natural that they cut back on costs where they can and invest in bolstering sales of their core business,” University of Oxford economist Craig Holmes said.

LinkedIn’s data also showed a 5% growth in the number of micro-businesses with fewer than ten employees. Holmes suggests that ‘‘this could in part be explained by British businesses’ increasing need for flexibility, as they cut some roles and drive a growth in self-employed consultants and freelancers as a result.’’

Josh Graff, UK Country Manager and VP, EMEA at LinkedIn also commented:

“Despite cuts to jobs, professionals in non-core roles should not feel disheartened. Our findings show that there is still a role for professionals working in these areas - albeit more flexibly than before. A change in focus for bigger businesses has given people an opportunity to strike out on their own - and it’s encouraging to see that the UK’s thriving entrepreneurial culture is showing no signs of slowing down.’’