LinkedIn Workforce Report | United Kingdom | January 2019
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 November 2018. This is our fourteenth Workforce Report for the UK, and it takes a comparative look at both data from November 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 November 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.
Our key findings on hiring activity in November:
Hiring was down in November prior to an expected seasonal dip. The Seasonally Adjusted (S.A.) Month on Month (MoM) Hiring Rate in November was down by 12.6% on the previous month, maintaining the downward trend visible since a peak in September and October and heading towards an expected seasonal low in December.
Hiring continues to be stronger than it was this time last year. Year on Year (YoY) hiring rates compared with November 2017 rose by 9.8% nationally, consistent with the monthly increases throughout much of the year and a further indication that more people are taking up new jobs than last year.
Hiring was down in all the UK’s regions. Despite the increase in hiring compared with last year, the S.A. MoM Hiring Rate was down significantly in all of the 11 UK nations and regions that returned significant data, with an average fall of 13.5%. The largest MoM declines were registered in Wales and the North East (down 19% and 17%, respectively). The South West performed better than other regions (down 7%).
London remains erratic. A lower S.A. MoM Hiring Rate rate in London during November (down 13%) overturned the capital’s performance in October, when it recorded the highest MoM growth of any part of the UK (15%), reversing a sluggish period. YoY London saw the smallest increase of any region compared with November 2017 (3%). The South West topped the chart YoY with growth of 14% versus the same month in 2017.
Hiring fell in every sector of the labour market. The S.A MoM Hiring Rate in November was down in all of the 20 labour market sectors that returned significant data – a reversal on October when 13 sectors grew. Retail and IT Hardware and Networking performed better than other sectors, albeit both declining MoM by 6%. The sectors that performed worst MoM were Finance (down 22%), Transport and Logistics (down 19%) which had previously been performing well, and Design and Education (both also down 19%).
More people continued to take up new jobs than in 2017. The picture of YoY growth was better, with all but one sector of the labour market growing versus November 2017 in another sign that more people are taking up new jobs than last year in most areas of the economy. The top performer was Corporate Services, up 15% YoY on the same month in 2017, with Software and IT services following it on 14%. An exception to the positive performance overall was Design, down 2% YoY.
The Hiring Rate
Methodology – LinkedIn Hiring Rate
The LinkedIn Hiring Rate is the percentage of LinkedIn members who changed the name of their new employer in the same month that they started their new job. This number is indexed to the average monthly value for 2015–16. We also show this number adjusted to exclude the impact of seasonality on the Hiring Rate, such as the spike in hiring at the beginning of the year.
This analysis represents the world seen through the lens of LinkedIn data. As such, it is influenced by how members choose to use the site, which can vary based on professional, social, and regional culture, as well as overall site availability and accessibility. These variances were not accounted for in the analysis.
The S.A. MoM National Hiring Rate in November was down by 12.6% on October, reversing a positive trend since August and the largest monthly decline recorded so far this year.
YoY hiring nationally rose by 10% on November 2017, in line with the increases seen throughout this year and a further indication that more people were taking up new jobs than in the previous year.
Regional Hiring Rates
In November, the S.A. MoM Hiring Rate declined in all of the 11 UK nations and regions that returned significant data, with an average fall of 13.5%, a significantly higher fall than in October. Wales and the North East recorded the largest MoM declines of 19% and 17%, respectively. The lower hiring rate in London (down 13%) was a significant drop from its performance in October when it recorded the highest MoM growth of 15%.
Every region of the country achieved YoY growth in hiring compared with November 2017, with the South West registering the best performance (up 14%) of the regions that returned significant data. YoY hiring in Yorkshire and the Humber, Wales and the East Midlands, at 9%, was also strong. London was at the bottom of the chart with just 3% YoY growth versus the same month in 2017, although this was the second month in a row in which hiring in the capital has grown in YoY terms.
Notable regional activity this month includes:
London – Hiring in London continues to be erratic, recording the average regional decline in the S.A. MoM Hiring Rate in November (down 13%) after two months of growth. London also recorded the lowest rate of growth in YoY hiring versus November 2017 of any region (3%) slipping to the bottom of the chart. Finance, Software and IT Services, and Corporate Services were again the top sectors for new hires in the capital.
Wales – The S.A. MoM Hiring Rate declined more in Wales than in any other region that returned significant data in November, decreasing by 19%. It is the second month in a row in which hiring has fallen in the principality following a mostly upward trend since March. YoY, however, the picture is stronger, with hiring up by 9% on November 2017, above the 7.5% regional average for the month. Hiring was again most healthy in Corporate Services, Manufacturing, and Finance.
South West – Although the S.A. MoM Hiring Rate was down by 7% in the South West in November, this was in fact the strongest performance by any region of the country. YoY hiring was also the strongest in the UK, up 14% versus November 2017 and almost double the regional average. Corporate Services, Manufacturing, and Finance were again the most popular hiring sectors in the region.
The North East – After having experienced no growth MoM in October, the Hiring Rate in the North East dropped by 17% in November, second only to Wales in terms of its negative performance. The YoY Hiring Rate was up 7% versus November 2017, after the North East had recorded the highest rate of any UK region the previous month with a YoY increase of 16% versus October 2017. The main sectors for hiring were Manufacturing, Corporate Services, and Energy and Mining.
The North West – The S.A. MoM Hiring Rate in November was a negative 16% in the North West after the region had been one of only three in October in which hiring rose. YoY, the Hiring Rate grew by 6% compared with November 2017. The top hiring sectors were Corporate Services, Software and IT Services, and Manufacturing.
South East – The S.A. MoM Hiring Rate also declined by 16% in the South East in November, after the region was one of only three that had grown in October. Growth in hiring YoY of 5% versus November 2017 was the second lowest next to London and below the regional average. The top sectors for new hires were Software and IT Services, Corporate Services, and Manufacturing.
Yorkshire and the Humber – The S.A. MoM Hiring Rate fell by 15% in Yorkshire and the Humber in November. However, the region enjoyed continued YoY growth, which was up 9% on the same month a year before. The sectors in which there were most new hires were Corporate Services, Manufacturing, and Software and IT Services.
The East of England – The S.A. MoM Hiring Rate in the East of England was down by 8% in November, although this figure put its performance towards the top of the chart compared with other regions. Growth in the YoY Hiring Rate of 6% in the East of England versus November 2017 was, however, at the lower end of the scale. Corporate Services, Software and IT Services, and Finance attracted most new hires.
Scotland – The S.A. MoM Hiring Rate was down by 12% in Scotland in November, although this performance was above the regional average. YoY growth in November was 6% on the same month in 2017. This has slipped since September when Scotland achieved the highest growth in YoY hiring of any part of the UK. The most popular hiring sectors were Finance, Energy and Mining, and Corporate Services.
The East Midlands – The S.A. MoM Hiring Rate was also down by 12% in the East Midlands in November, although its performance is an improvement on October when it was at the bottom of the chart. YoY hiring rose by 9% versus the same month in 2017. The busiest hiring sectors were again Manufacturing, Corporate Services, and Software and IT Services.
The West Midlands – The MoM Hiring Rate declined by 14% in the West Midlands in November. However, YoY the Hiring Rate was stronger, with growth of 8% versus November 2017. Most new hires were in Manufacturing, Corporate Services, and Software and IT Services.
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. All of the 20 labour market sectors that returned significant data in November registered a decline in the S.A MoM Hiring Rate – a significant reversal on October when 13 sectors grew. Overall, there was an average MoM decline of 13% across all the sectors in November. By contrast, in all but one sector of the labour market hiring YoY grew in comparison to November 2017. Design was the sector that was exception to the rule, down 2% on the same month a year previously.
Finance – Financial hiring has clearly taken a hit after having enjoyed healthy growth since August, and in November the S.A. MoM Hiring Rate fell by 22% - the steepest decline of any labour market sector. This sluggish performance was confirmed by the performance of the Hiring Rate YoY, which at 6% versus November 2017 was towards the bottom of the chart. Although London accounted for nearly half of all new financial hires, this leading position among the regions has slipped since October.
Transportation and Logistics – The S.A. MoM Hiring Rate in Transportation and Logistics also fell by a steep 19% in November, after healthy 14% growth the previous month. YoY growth of 7% versus November 2017 was considerably below the 27% achieved in October, the highest in the labour market.
Design – The Design sector continues to register limited activity, with the fall in the S.A. MoM Hiring Rate of 19% in November the second highest in the sectors after Finance. Nor is the YoY picture much better, with Design the only sector in the labour market to register a decline in hiring versus November 2017 (down 2%) placing it at the bottom of the chart.
Nonprofit – The Nonprofit sector has been volatile and in November registered a fall in the S.A. MoM Hiring Rate of 17% after having recorded the highest hiring rate in the labour market in October (20%). At 8%, the YoY Hiring Rate in November compared to the same month a year before was positive but below the sectoral average.
Legal – The Legal sector has been struggling to record robust growth and the S.A MoM Hiring Rate in November was down by 16%, well below the sectoral average for the second month in a row. However, YoY the picture is much better, with the Hiring Rate growing by an above average 13% compared with November 2017.
Media and Communications – A decline in the S.A. MoM Hiring Rate in Media and Comms in November of 13%, the sectoral average, reverses an improvement in October when growth of 15% pushed this sector towards the top of the chart. YoY growth of 10% versus November 2017 was above average, however.
Manufacturing – The S.A. MoM Hiring Rate in Manufacturing also fell by the sectoral average of 13% in November, one of five labour market sectors to do so. YoY this sector grew by 8% versus the same month in 2017, marginally below average and a slight decline on October.
Energy and Mining – The Energy and Mining sector recorded a decline of 12% in the S.A. MoM Hiring Rate in November, although this performance was above the sectoral average. The Hiring Rate YoY was 3% up on November 2017, the second lowest of any labour market sector. In October it had been the only sector to register a YoY decline in the hiring rate (down 4% versus the same month the previous year).
Retail – Although the S.A. MoM Hiring Rate in the Retail sector was down by 6% in November, its performance was double the sectoral average and placed it at the top of the chart among the sectors that returned significant data. YoY growth in the Hiring Rate versus November 2017 was 10%, an improvement on last month.
IT Hardware and Networking – Like Retail, the S.A. MoM Hiring Rate in IT Hardware and Networking at a negative 6% in November also positioned this sector at the top of the chart. The sector achieved growth in hiring YoY of 9% versus November 2017.
Corporate Services – The S.A. MoM Hiring Rate was down 13% in the Corporate Services sector in November, a second month in which it registered negative growth. The Hiring Rate YoY was much more positive, with 15% growth versus November 2017 - making it the highest of any labour market sector.
Software and IT Services – Although there was a decline in the S.A. MoM Hiring Rate of 10% in Software and IT Services in November, this performance was above the sectoral average and at the upper end of the chart. At 14%, growth in the YoY Hiring Rate versus November 2017 was much more positive and put this sector second only to Corporate Services in terms of its yearly performance.
Education – The S.A. MoM Hiring Rate in the Education sector declined for the second month in a row in November, falling by 19% and placing it towards the bottom of the performance chart. However, after the seasonal boost to Education hiring in September, when the sector outperformed the rest of the labour market, declines in October and November were to be expected. In yearly terms, YoY growth is up 13% on November 2017.
Construction – The S.A. MoM Hiring Rate fell by 12% in November in the Construction sector, although this decline reflects a better performance than the sectoral average. Growth in the YoY Hiring Rate of 7% versus November 2017 confirms a slowdown since August.
Public Administration – An above average fall in the S.A. MoM Hiring Rate of 17% in the Public Administration sector in November confirms a downward trend in the public services since September. The picture YoY is better, with the Hiring Rate up 10% on November 2017, slightly above the sectoral average.
Healthcare – As with Public Administration, the 16% decline in the S.A. MoM Hiring Rate in the Healthcare sector in November reflects sluggish hiring in the public services. YoY hiring growth of 9% compared with November 2017 reflected the sectoral average.
Consumer Goods – Although the S.A. MoM Hiring Rate in the Consumer Goods sector fell in November by 11%, this performance was above average and towards the upper end of the chart. The hiring rate YoY was up 10% versus November 2017, a slight fall since October but also above average.
Real Estate – The Real Estate sector continues to experience volatility, with the S.A. MoM Hiring Rate in November down for the second month in a row (negative 13%) after it had recorded 16% growth in September. However, Real Estate registered healthy YoY growth in hiring of 12% versus November 2017.
Entertainment – The S.A. MoM Hiring Rate in the Entertainment sector was down by 8% in November, although this performance was well above the sectoral average, placing it towards the top of the chart. Growth in the YoY Hiring Rate was up 8% versus November 2017.
Recreation and Travel – Recreation and Travel was one of five sectors in which the S.A. MoM Hiring Rate declined by the sectoral average of 13% in November. The YoY Hiring Rate grew by 8% versus November 2017.
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