HR roles are now the most competitive in the UK job market, with more than 100 applicants chasing every vacancy. That’s according to new research that warns that small businesses are at risk of recruitment bottlenecks without faster and smarter hiring practices.
SME lending platform Funding Circle analysed job search activity and live vacancies across 14 sectors. It found that HR, retail and hospitality roles are all generating over 100 applications per job. For HR positions specifically, applicants face a less than 1 percent chance of success.
The trend reflects a broader tightening in the UK labour market. The latest official figures show vacancies fell by 63,000 in the most recent quarter, the 35th straight quarterly decline. That leaves 2.2 unemployed people for every open role — up from 1.9 just months earlier.
HR, retail and hospitality roles attract highest volumes
The research shows that HR roles are currently the toughest to land, and among the hardest to hire for, with an estimated 129 applicants for every HR vacancy. In comparison, retail and hospitality roles receive 119 and 112 applicants per vacancy respectively.
Despite nearly 5,000 HR vacancies being live at the time of the analysis, annual job searches for HR roles topped 118,800. That imbalance means candidates face long odds and employers face an influx of CVs that may not meet job criteria.
“Job seekers in these sectors face a highly competitive job market, while employers may find themselves inundated with applications, many of which may be from overqualified or underqualified candidates, creating inefficiencies in the recruitment process,” the report notes. “Oversaturation in these sectors is creating a bottleneck, both for candidates and hiring managers.”
Funding Circle recommends that small firms consider applicant tracking tools or structured assessments to help filter large volumes quickly and fairly.
Admin, marketing and customer service remain competitive
Admin, marketing and customer service jobs are also seeing strong competition, although with slightly better odds. These roles receive between 48 and 49 applicants per vacancy, which translates to a 2 percent success rate for candidates.
SMEs operating in these areas are advised to capitalise on higher turnover rates to make strategic hires during brief recruitment windows. The volume of candidates may also offer opportunities to identify adaptable, long-term employees with cross-functional potential.
Shortages continue in legal, design and digital fields
At the other end of the spectrum, legal, education and design roles are among the least competitive. In these areas, applicants stand a 10 to 15 percent chance of success, reflecting relatively low application numbers and more targeted candidate pools.
IT remains one of the least crowded sectors, with only 13 applicants per vacancy and an 8 percent success rate. Funding Circle attributes this to sustained demand for digital skills.
For employers hiring in under-supplied areas, the report stresses the importance of strong offers, from flexible working and career progression to purpose-driven roles.
How SMEs can respond to hiring pressure
Funding Circle outlines four core strategies for SMEs looking to compete more effectively in a tightening job market:
Focus on roles that drive growth
Prioritise hires that deliver clear value, whether by improving efficiency, boosting sales, or enhancing customer retention.
Offer flexible arrangements
Hybrid models, freelancers, and part-time contracts can attract high-calibre talent without overextending budgets.
Differentiate the offer
Emphasise autonomy, variety and mission over salary alone. Learning budgets and transparent progression paths are also appealing.
Speed up the process
In-demand candidates often have options. Streamline applications using templates, job boards and applicant tracking tools such as Workable or BreezyHR.
Finance options to support hiring
Experts say that hiring challenges often come down to timing and liquidity. Access to fast business finance can help SMEs fund advertising, signing bonuses, recruiter fees or systems that improve hiring efficiency.
“In a competitive hiring landscape where vacancies are falling and applicant numbers are rising, securing the right talent quickly can be the key to growth,” Funding Circle notes. “With the right funding in place, businesses can move fast to attract top talent, strengthen their teams, and take advantage of growth opportunities without compromising cash flow.”
The analysis combined UK job search data with live vacancy counts on recruitment site Reed.co.uk across 14 sectors.
