Over 25 million people in the UK have LinkedIn profiles. We anonymise and aggregate the information from these profiles to create unique insights into workforce trends.

The LinkedIn Workforce Report is a monthly report looking at hiring and professional migration trends in the UK, and this month’s report looks at the latest data from October 2018. This is our thirteenth Workforce Report for the UK, and it takes a comparative look at both data from October 2018 and data from the previous 12 months to benchmark our findings and identify trends.

We time the workforce report in order to support the Office for National Statistics (ONS) labour reporting cycle, and the report we issue ahead of the ONS’s Labour Market Review covers the same period, up to the end of October 2018.

LinkedIn’s vision is to create economic opportunity for every worker in the global workforce. We hope that the Workforce Report will be useful to our members, allowing you to better navigate your career, and to businesses and policy makers, who will be able use our insights to better inform their decisions on talent, migration, and employment.

Key Insights

Our key findings on hiring activity in October:

• Hiring is increasing and is at its highest level so far this year. Growth in the Seasonally Adjusted (S.A.) Month on Month (MoM) National Hiring Rate was 3.9% in October. While this was below the monthly increase registered in September (8.6%), the hiring rate was still the strongest recorded this year.

• Nationally hiring is stronger than it was this time last year. Year on Year (YoY), hiring rates were 14% higher than in October 2017, continuing the upward trend since August and consistent with positive increases throughout 2018. Healthy hiring continues to indicate that more people are taking up new jobs than last year.

• However, hiring was down in most regions of the UK. In October, the S.A. MoM Hiring Rate grew in just three of the 11 UK nations and regions that returned significant data and fell or stood still in eight. Every region of the UK achieved YoY growth in hiring compared to October 2017, with the North East registering the best performance at 16% and Scotland and Wales also strong (both 14%).

• London has strong hiring growth, and this is the source of the national strength. The capital stood out in October for recording the highest growth in the S.A. MoM Hiring Rate of any region, at 15%, reversing a sluggish period. As a result, it is driving the strong October Hiring Rate nationally.

• Hiring grew in most labour market sectors. MoM hiring rates were up in most areas of the labour market, with 13 of the 20 sectors that returned significant data in October registering MoM growth in October. Growth was particularly strong in Finance (18%), more than four times the sectoral average of 4.3%, and the Nonprofit sector recorded a surprising increase of 20%. Hiring improved in the Media and Communications sector with growth in October of 15%. The worst performing sector was Education (down 12%), but this is expected after the spike of hiring in this sector in September.

• Hiring is up significantly across the board on last year. In October, every sector of the labour market that returned significant data grew in comparison with the same month last year, except for Energy and Mining, which was down 4% on October 2017. The Transport and Logistics sector led the way with YoY growth of 27% versus this month last year, followed closely by Finance (up 24%), Legal (+20%), and Real Estate (+19%).

• Talent continues to leave the UK. Eight out of the 12 British nations and regions reported net movements of talent overseas in October. The regions attracting talent from abroad were once again the East of England and East and West Midlands. The largest net international outflows were in Yorkshire and the Humber, the North East, and Wales.

• London is still losing international talent. The capital has been experiencing net outflows of foreign workers for eight months, and the rate at which it is doing so increased in October. For the third consecutive month, the majority of new arrivals to London came from within the UK. Scotland, previously the only region in which the majority of new arrivals were international attracted a greater proportion of migrants from within the UK in October. The highest number of people leave for other parts of the UK from the South East and East Midlands.

The Hiring Rate

Methodology – LinkedIn Hiring Rate

YoY hiring nationally rose by 14% on October 2017, the second highest such monthly increase this year and a further indication that more people are taking up new jobs than last year.

The S.A. MoM National Hiring Rate in October was up 3.9% on September, maintaining the upward trend visible since August to achieve the highest monthly hiring rate recorded so far this year.

Regional Hiring Rates

In October, the S.A. MoM Hiring Rate declined or stood still in eight of the 11 UK nations and regions that returned significant data, with an average fall of under 1%. The East Midlands, East of England and South West recorded the largest MoM declines, albeit of only 4%. London stood out for recording the highest MoM growth of 15%, reversing a period of sluggish growth.

Every region of the country achieved YoY growth in hiring compared with October 2017, with the North East registering the best performance (16%) of the regions that returned significant data. YoY hiring in Scotland and Wales is also strong at 14%. London was towards the bottom of the chart with 5% YoY growth versus the same month last year, although this ended a run of three months in which hiring fell in the capital in YoY terms.

Notable regional activity this month includes:

London – Hiring in London remains erratic, achieving the highest growth in the S.A. MoM Hiring Rate of any region in October (15%) after having grown in September at the lowest rate of any UK region (2%). The latest figures end a period in which hiring in the capital has been sluggish. YoY hiring in London grew versus October 2017 (5%), and although this was the second lowest of any region apart from the East of England (4%), it reverses the downward trend of the previous three months. Finance, Corporate Services, and Software and IT Services were again the top sectors for new hires.

The North West – The  North West was one of only three regions in which the S.A. MoM Hiring Rate in October rose with growth of 6%, but this represents a decline since September. YoY, the Hiring Rate grew by 9% compared with October 2017. The top hiring sectors were Corporate Services, Software and IT Services, and Manufacturing.

South East – The South East was the third region in which the S.A. MoM Hiring Rate grew in October (up 4%), although this was lower than the growth it achieved in September. Growth YoY of 11% versus October 2017 was above the regional average (10%) and also improves on the previous month when it was at the lower end of the scale. Software and IT Services, Corporate Services, and Manufacturing were the top sectors for new hires.

The North East – Although there was no growth in the Hiring Rate MoM in the North East in October, it recorded the highest YoY Hiring Rate of any UK region which showed an increase of 16% versus October 2017. This maintains the strong performance of September, when it was second to Scotland in terms of YoY hiring. The main sectors for hiring were Corporate Services, Manufacturing, Software and IT Services, and Energy and Mining.

Wales – The S.A. MoM Hiring Rate was down by 1% in Wales in October. YoY, however, the picture is much stronger, with hiring growing by 14% compared to October 2017. This is well above the 10% regional average for the month and above the YoY figure for September. Hiring was most healthy in Corporate Services, Manufacturing, and Finance.

Yorkshire and the Humber – The S.A. MoM Hiring Rate fell by 3% in Yorkshire and the Humber in October. The region enjoyed continued YoY growth, however, which was up 9% on the same month last year. Most new hires were in Corporate Services, Manufacturing, and Education.v

Scotland – After shaking off a period of sluggish growth in September by achieving the second highest S.A. MoM growth in the UK after Wales, Scotland performed poorly in October with hiring falling by 3%. Nonetheless, YoY growth in October was strong, up 14% on the same month last year.This continues the healthy performance of September in which Scotland achieved the highest growth in YoY hiring (up 15%) of any part of the UK. The most popular hiring sectors were Education, Finance, and Corporate Services.

The West Midlands – The MoM Hiring Rate also declined in the West Midlands in October (down 3%), reversing a strong performance of 10% in September. However, YoY the Hiring Rate was stronger, with growth of 12% versus October 2017, an improvement on September. Most new hires were in Manufacturing, Corporate Services, and Education.

South West – The S.A. MoM Hiring Rate declined by 4% in the South West in October putting the region alongside the East of England and the East Midlands at the bottom of the chart. The Hiring Rate was up YoY by 9% versus October 2017, and the region has maintained a positive performance since August. Corporate Services, Manufacturing, and Finance were the most popular hiring sectors in the region.

The East of England – The S.A. MoM Hiring Rate in the East of England was also down by 4% in October, overturning growth of 9% in September. The region experienced the lowest growth in YoY Hiring Rate versus October 2017 of any part of the UK (4%). Corporate Services, Finance, and Software and IT Services attracted most new hires.

The East Midlands – The S.A. MoM Hiring Rate was down 4% in the East Midlands in October, also reversing healthy growth in September (up 13%). The YoY hiring rate rose by 7% versus the same month in 2017. The busiest hiring sectors were again Manufacturing, Corporate Services, and Education.

Sector Hiring Rates

A deep dive into the individual Hiring Rates of different sectors of the economy can give us a better understanding of the changes that have been taking place. Of the 20 labour market sectors that returned significant data in October, 13 registered growth in the S.A MoM Hiring Rate - a slight fall since September when 17 sectors grew. Overall, there was average MoM growth across all the sectors in October of 4.3%. YoY, every sector of the labour market grew in comparison to the same month last year except for Energy and Mining, which was down 4% on October 2017.

Nonprofit – The Nonprofit sector recorded the highest S.A. MoM Hiring Rate in the labour market in October, growing by 20%, a dramatic improvement since September when growth was just 3%. The YoY Hiring Rate was also towards the top end of the chart with growth of 18% compared to the same month last year.

Finance – Hiring in the Finance sector has been enjoying healthy growth since September, and in October the S.A. MoM Hiring Rate rose by 18%. This is the second highest of any sector and more than four times the sectoral average of 4.3%. The Hiring Rate YoY grew 24% versus October 2017, again well above the sectoral average of 17%. London accounts for more than half of all new financial hires.

Media and Communications – Hiring rates improved in Media and Communications in October with growth of 15% in the S.A. MoM Hiring Rate moving this sector towards the top of the chart. This reverses a sluggish period, with hires falling in August and September. YoY growth was 11% versus October last year.

Transportation and Logistics – The S.A. MoM Hiring Rate grew by a strong 14% in Transportation and Logistics in October, which is three times the sectoral average. This sector achieved impressive YoY growth of 27% versus October 2017. This is the highest rate of growth in the labour market and indicates that there has been a significant increase in hiring since this time last year.

Construction – After strong growth of 14% in September, the S.A. MoM Hiring Rate in the Construction sector fell by a disappointing 4% in October. Growth in the YoY Hiring Rate of 11% versus October 2017 also shows signs of slowing after above average rates in August and September.

Education – After the seasonal boost to Education hiring in September, when the sector outperformed the rest of the labour market with 27% growth in the S.A. MoM Hiring Rate, a decline in October of 12% was to be expected. This was the lowest among the labour market sectors that returned significant data. In yearly terms, however, growth is up on last year with a YoY increase of 14% in hiring compared to October 2017.

Corporate Services – The S.A. MoM Hiring Rate was down 2% in the Corporate Services sector in October, reversing growth of 15% in September. However, the Hiring Rate YoY registered healthy growth of 16% versus October 2017.

Manufacturing – The S.A. MoM Hiring Rate in the Manufacturing sector also fell by 2% in October, in line with the erratic performance shown by this sector for much of this year. However, YoY this sector grew by 11% versus the same month in 2017, which improves on September.

Energy and Mining – The Energy and Mining sector achieved growth in the S.A. MoM Hiring Rate of 6% in October, which was above the sectoral average. However, it was the only sector to register a YoY decline in the hiring rate (down 4% versus October 2017).

Legal – While growth in the S.A MoM Hiring Rate in the Legal sector of just 2% in October was half the sectoral average, YoY the picture is much better, with the Hiring Rate growing by an above average 20% compared with October last year.

Real Estate – The Real Estate sector continues to experience volatility, with the S.A. MoM Hiring Rate in October down 2% after having recorded 16% growth in September. In keeping with this volatile trend, Real Estate registered strong YoY growth in hiring of 19% versus October 2017.

Software and IT Services – The S.A. MoM Hiring Rate grew by 5% in Software and IT Services in October. This is slightly above the sectoral average and confirms a gradual upward trend evident since March. Growth in the YoY Hiring Rate versus October 2017 was 14%.

Retail – The S.A. MoM Hiring Rate grew by 5% in the Retail sector in October, maintaining its smooth upward drift since earlier this year. YoY growth in the Hiring Rate versus October 2017 was 8%, unchanged on last month.

Entertainment – Hiring in the Entertainment sector continues to be volatile, with the S.A. MoM Hiring Rate growing strongly in October by 12% after having fallen in September. Growth in the YoY Hiring Rate of 7% versus October 2017, however, was towards the lower end of the scale and well below the sectoral average.

Consumer Goods – The Consumer Goods sector registered above average growth in the S.A. MoM Hiring Rate in October of 5%, maintaining its stable upward trend since February. The hiring rate YoY was up 13% versus October 2017.

Healthcare – October’s below average growth in the S.A. MoM Hiring Rate of 1% in the Healthcare sector reflects sluggish hiring in the public services after a healthy September. However, YoY hiring growth of 16% compared with October 2017 was at the upper end of the chart and improved on the previous month.

Public Administration – The S.A. MoM Hiring Rate was down by 2% in the Public Administration sector in October, confirming the slowdown in the public services after September’s growth. The picture YoY is better, with the Hiring Rate up 14% on October 2017.

Recreation and Travel – In October, the S.A. MoM Hiring Rate grew by an above average 5% in the Recreation and Travel sector. Growth of 13% in the YoY Hiring Rate on the same month last year was in the middle range of sectoral performance.

Design – Growth in the S.A. MoM Hiring Rate of 2% in the Design sector in October was less than half the sectoral average. The YoY Hiring Rate was towards the lower end of the chart at 9% versus October 2017.

IT Hardware and Networking – There was no change in the S.A. MoM Hiring Rate in the IT Hardware and Networking sector in October, after it had achieved above average growth of 10% in September. However, the sector achieved growth in hiring YoY of 14% versus October 2017.

Migration

Since the referendum on the UK’s membership of the European Union, migration into the UK has been falling consistently, and in the first quarter of this year the country became a net exporter of talent. In October, the trend that has been evident since then continued, with eight out of the 12 British nations and regions reporting net movements of talent to other countries, one less than in September.

London was again a net loser of international talent in October, although it remains by far the most attractive region for foreign arrivals by volume, and still attracts almost double the number of overseas workers than its nearest rival: Scotland. However, Scotland continues to lure a slightly higher proportion of new arrivals from other countries. London became a net exporter of talent to the EU27 in Q1 2018, and in October the capital continued to lose international talent, with the rate at which it has been doing so growing.

Outward migration from the UK’s regions

The South East continues to be the region from which members are most likely to leave and move to other UK regions or abroad, having overtaken London in September for the first time. Both regions and the East Midlands are those from which members are most likely to leave, although in October the rate at which this happened slowed compared to September.

Of the three regions with the greatest number of overall departures, only London saw a majority of people who were moving overseas in October. In every region of the UK, the proportion of people departing who head abroad continues to decline.

Inward migration to the UK’s regions

In October, London, the South East and the East of England continued to be the three regions gaining the most members from other UK regions or other countries in absolute terms.

For the third month in a row, in October the majority of new arrivals to London came from within the UK, and the rate at which they are heading to the capital continues to increase. There has been a consistent decline since the start of the year in the proportion of migrants arriving in London from other countries compared to those coming from within Britain, reflecting the city’s slowly declining attraction to international talent. Scotland is no longer the only region in which the majority of new arrivals are international, and in October for the first time it attracted a greater proportion of migrants arriving from within the UK. No region of the UK now attracts a majority of new arrivals from abroad.

Net flows to UK regions

In October, London, the South West, the North West and Northern Ireland were net recipients of combined domestic and international migration. The South East is the region experiencing the largest net outward movement of people in proportional terms of any part of the UK, and in October there were signs that the upward trend of members leaving the region since early this year is strengthening.

In terms of net domestic migration, London continues to attract more people from within the UK of any region, although it did so at a slower rate in October. The South East and East Midlands are the regions from which the highest number of people leave for other parts of the UK.

From the perspective of international migration, in October just three of the UK’s 12 nations and regions were net gainers of international talent (the East Midlands, West Midlands and the East of England), which shows a significant drop from the nine recorded in January. There were indications that Northern Ireland has been gaining international talent, although it is not yet a net recipient. London, the North West, the North East, Yorkshire and the Humber, the South West, the South East, Scotland and Wales all lost more workers to other countries than they gained, and in some cases the rate at which they are doing so is increasing.

Discuss the report on LinkedIn and Twitter at #UKWFR. Follow @LinkedInUK on Twitter to receive future reports, and follow our UK Country Manager Josh Graff on LinkedIn for additional insights.