Employer hiring intent across the UK for Q1 remains steady at +27%, according to the latest ManpowerGroup Employment Outlook Survey for Q1 2024.

Hiring intent was led by financials and real estate (+38%), IT (+33%) and communications services (+33%), despite ongoing high inflation and economic uncertainty.

Data from the latest ManpowerGroup Employment Outlook Survey of UK hiring managers also indicates that cross-sector skills gaps have reached a record 18-year high of 80% nationally.

ManpowerGroup said the data suggests the need to evolve current hiring practices if UK businesses are to remain competitive, both domestically as well as internationally.

“An inhibiting paradox has long afflicted the UK job market – namely, a loosening of hiring demand on one hand contrasting with record long-term job vacancy volumes on the other,” observes Michael Stull, Director at ManpowerGroup UK.

Stull added, “The persistent mismatch between the skills employers are looking for and the abilities candidates have – for specialist positions, in particular – presents employers across Britain with a stark choice: either continue fishing in the same pond in the same way for skills that are scarce or try a new approach by adopting skills-based hiring. The former keeps us on a continued path towards economic stagnation in 2024, whilst the latter has potential to alleviate talent shortages, drive innovation and create more diverse workforces – even in the face of stiffening economic headwinds.”

Employers in London anticipate a steady labour market during the January – March period, reporting a Net Employment Outlook of +32%. Hiring has increased 2% since last quarter and 8% year-on-year. Hiring in London is 5% above the national average, and the region with the joint-third highest Net Employment Outlook of the 12 UK regions.

SIA interviewed ManpowerGroup UK operations director, on-site solutions/strategic partnerships, on the latest UK ManpowerGroup Employment Outlook Survey and on how skills-based hiring could be a key to alleviating talent shortages across the UK.

To listen to the interview click below.