There is a disconnect in the UK job market, with 74 percent of employers reporting a lack of quality candidates as a key challenge while 64 percent of jobseekers say they are struggling to find suitable roles, according to reseach by global hiring platform Indeed.
The study, which surveyed over 2,000 UK jobseekers and employers, reveals growing recruitment difficulties. Over half of employers (56 percent) say hiring has become more difficult in the past three years, with 45 percent struggling to find applicants with the required skills.
For jobseekers, pay transparency (33%) is cited as the biggest challenge, followed by unrealistic role requirements (28 percent) and an overemphasis on formal education (18%).
Skills-First Hiring Gains Traction
To address hiring difficulties, 38 percent of employers are refining job descriptions, while 37 percent are adjusting salary and benefits.
Skills-first hiring, which prioritises candidates’ specific skills over traditional qualifications, is one possible solution. Currently, only 30 percent of UK employers have a formal skills-first hiring strategy, but those that do report benefits. Among them, 35 percent say it has improved innovation by introducing diverse skill sets, while 33 percent report an increase in quality applicants.
About a quarter (26%) of employers without a skills-first strategy plan to implement one. However, a knowledge gap remains, with 73 percent of jobseekers unfamiliar with the concept.
For jobseekers, demonstrating skills effectively could improve their hiring prospects. While 59 percent rely on their on-the-job experience listed in their CVs, 38 percent highlight specific skills. A third (34%) believe showcasing their abilities more clearly would help them avoid unsuitable interviews.
Learning and Development Becomes a Key Factor
Both jobseekers (65%) and employers (58%) agree that a quality hire brings new capabilities and perspectives to a team. Additionally, 59 percent of employers say a willingness to upskill and train is a key indicator of a strong candidate.
Almost three-quarters (73%) of jobseekers consider learning and development (L&D) important when evaluating a role. More than half (56%) would accept a lower salary in exchange for career development opportunities. In response, 37 percent of employers have updated their L&D programmes, while 23 percent plan to do so.
Despite its importance, nearly half (47%) of jobseekers only learn about L&D opportunities during interviews, suggesting that employers may be missing earlier chances to attract talent.
Improving Recruitment Strategies
Danny Stacy, Head of Talent Intelligence at Indeed, acknowledges the hiring challenges facing businesses and jobseekers.
“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 which means there are roles to be filled, but at the same time jobseekers think 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 the disconnect in the UK job market.
“By improving pay transparency, adopting skills-first hiring practices and offering strong learning and development opportunities, employers can attract better talent in this challenging market. At the same time, jobseekers who can effectively demonstrate their adaptability and relevant skills, alongside willingness to learn, will find themselves at an advantage when it comes to securing their next role.”
