UK businesses face increasing difficulties in hiring skilled talent despite a large number of jobseekers, according to new research from LinkedIn – and 45 percent of recruitment teams are turning to AI tools.
LinkedIn’s 2025 Skills on the Rise report identifies relationship building, strategic thinking and AI literacy as the fastest-growing skills, as many businesses report a widening gap between the skills they need and those available in the market.
LinkedIn data shows that while 61 percent of UK professionals are actively looking for new roles, employer confidence in attracting top talent has declined, falling from +57 to +50 in the past year. One of the biggest challenges is a shortage of soft skills, with nearly half (45%) of UK hiring managers stating that finding candidates with the right interpersonal and strategic abilities is increasingly difficult.
Concerns around skills readiness are also evident among job seekers. One in five (20%) professionals worry they will not have the necessary skills for the future. However, there is strong demand for career development, with learning new skills ranked as the top factor professionals say would help them progress.
AI Reshaping Hiring and Skills Development
As skills shortages persist, UK businesses are turning to AI to improve hiring processes and support workforce development. LinkedIn reports that nearly half (45%) of UK recruitment teams are integrating or experimenting with AI tools, an increase from 27 percent last year. AI is already playing a role in hiring decisions, with 66 percent of recruiters stating that AI has helped them identify candidates they might not have considered otherwise.
UK recruiters report saving an average of 18 percent of their workweek – equivalent to nearly a full working day – through automation.
Janine Chamberlin, Head of LinkedIn UK, commented, “The world of work is undergoing a huge shift and it’s becoming increasingly tough for UK businesses to find the skills they need. With 70 percent of the skills required for jobs set to change by 2030, companies must adapt to stay competitive.”
Chamberlin added that as well as helping businesses hire more efficiently, AI is also playing a role in upskilling workforces.
