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 March 2018. This is our seventh Workforce Report for the UK, and it also takes a comparative look at both data from April 2018 as well as that from the previous 12 months to benchmark our findings and identify trends.

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.

This month we have retimed the workforce report in order to better support the Office for National Statistics (ONS) labour reporting cycle, the report we issue ahead of the ONS’s Labour Market Review covers the same period, up to end of April 2018.

Key Insights

• The UK continues to see a net loss of international talent. In April a significant shift in the net outflows of overseas workers that had become evident over the first quarter of 2018 continued. The UK continues to be a net exporter of talent, due largely to the fall in migration into the country since the referendum on its membership of the European Union.

• London also is seeing a net outflow of professional talent to overseas. In April the capital continued to lose workers overseas for the third month in a row. The city became a net exporter of talent to the EU27 in the first quarter of 2018. While a net loser of professionals to other countries, London remains a more attractive UK destination for foreign workers than other regions, and continues to gain talent from the UK’s regions.

• Most of the UK’s nations and regions reported net movements abroad. Eight out of 12 regions experienced outflows of international talent during April, with the largest being Northern Ireland, the North East, and Yorkshire and the Humber. Only the South East, South West, the East of England and the West Midlands attracted more overseas workers than they lost.

• Hiring nationally is heading back up. The seasonally adjusted (S.A.) month on month (MoM) Hiring Rate for April was up 7.6%, ending a downward trend since January. The Hiring Rate grew MoM in all of the 12 UK nations and regions. Hiring in London picked up by 11% MoM, and the North East and Wales also registered healthy growth.

• Hiring rates have improved significantly on last year. The year on year (YoY) National Hiring Rate for April 2018 indicated a robust 18% increase on April 2017. YoY increases were evident in several bellwether sectors covering key professions such as Legal and Finance, but also Real Estate, Construction, Manufacturing, Energy and Mining.

• Hiring activity across different sectors varied significantly. In April the seasonally adjusted MoM hiring performance varied considerably across different sectors, with negative or only modest growth in Hardware and Networking (–4%) and Software and IT services (2%), but greater momentum was seen in the Legal (+19%) and Finance (+13%) professions, and a rebound in Energy and Mining (+17%).

The Hiring Rate

The S.A. MoM National Hiring Rate for April was up 7.6% on the previous month, reversing a decline of 1.2% in March and ending a downward trend since January.

Year on Year (YoY), hiring was up 18% on April 2017, a positive indication that more people took up new jobs in April 2018 than in April 2017.

Regional Hiring Rates

The S.A. change in the Hiring Rate grew MoM in April in all of the 12 UK nations and regions. Hiring in London picked up by 11% MoM. Alongside the capital, the North East and Wales also registered the top level of growth among the UK’s regions of 11%, both of which had also experienced falls in March. Yorkshire and the Humber achieved the most significant YoY growth in the UK of 22% versus April 2017

Notable regional activity this month includes:

London

The S.A. Hiring Rate in London MoM grew by 11% in April, ending a run of five months in which there had been no significant increase or decrease in hiring in the capital. YoY growth in hiring of 12% on April 2017 shakes off poor yearly figures for March. Finance was the top sector for new hires in the capital, followed by corporate services, and software and IT services.

Wales – Wales was a high-performing outlier in April, with the S.A. MoM Hiring Rate registering 11% growth – among the top performing areas of the UK – compared to a disappointing fall in March of 9%, the worst in the country. The YoY Hiring Rate in Wales was also healthy, growing 11% versus April 2017. Manufacturing led the way among sectors recording most new hires, followed by corporate services, and software and IT services.

The North East – The North East was also a top performer in April, achieving growth of 11% in the S.A. MoM Hiring Rate. This also overturns a disappointing March when the hiring rate had fallen by 6%. However, YoY the North East’s performance was disappointing, with just 1% growth versus April 2017, placing it at the bottom of the regional table. The top sectors for new hires were energy and mining, manufacturing, and corporate services.

Yorkshire and the Humber – The S.A. MoM Hiring Rate in Yorkshire and the Humber grew 10% in April, above the national average and improving on March (2% increase). The region also achieved the highest YoY growth in the Hiring Rate of any part of the UK of 22% versus April 2017, suggesting that hiring prospects have improved compared with this time last year. Top sectors for new hires were corporate services, manufacturing, and software and IT services.

The East of England – The S.A. MoM Hiring Rate also grew by 10% in April, and the YoY Hiring Rate was a healthy 16% higher on April 2017. Corporate services, finance, and software and IT services were the top sectors for new hires.

The North West – The hiring performance in the North West was also up in April, with growth of 9% in the S.A. MoM Hiring Rate, while YoY growth on April 2017 was also positive, up 14%. Corporate services and finance were the top sectors for new hires in the region, followed by manufacturing.

South East – Hiring in the South East matched the national average growth in the S.A. MoM Hiring Rate in April of 7%. The region’s YoY Hiring Rate also rose at a healthy rate, up 10% on April 2017, albeit lower than most other regions. The top sectors for new hires were software and IT services, corporate services and manufacturing.

Scotland – The S.A. MoM Hiring Rate in Scotland grew 6% in April, below average but nonetheless up on March when there had been no change. Growth in Scotland’s YoY Hiring Rate of 12% versus April 2017 was above that achieved in the previous month. Energy and mining was the top sector for new hires, followed by corporate services and finance.

The West Midlands – The hiring rate in the West Midlands displayed positive but below average growth of 5% MoM. However, YoY the Hiring Rate was 14% up on April 2017 and towards the higher end of the regional performance across the country. The sector that achieved most new hires was manufacturing, followed by corporate services and software and IT services.

South West – Growth in the S.A. MoM Hiring Rate in the South West was also below average at 5%, but confirms a mostly consistent upward trend since the start of the year. The hiring rate was up 11% YoY versus April 2017. Corporate services and finance were the top sectors for new hires, followed by manufacturing.

The East Midlands – In April the East Midlands recorded the lowest rate of growth in the S.A. MoM Hiring Rate (3%) of any region returning significant data, although its YoY Hiring Rate saw an above national average 15% increase on April 2017. Manufacturing was the top hiring sector in the region, followed by corporate services and software and IT services.

Sector Hiring Rates

A deep dive into the individual Hiring Rates for different sectors of the economy can give us a better understanding of the hiring changes that have been taking place.

Legal – The Legal sector is showed the most dramatic increase in hiring within the labour market, with the S.A. MoM Hiring Rate up 19% in in April, greatly increasing its modestly positive performance in March (+2% MoM). YoY the Hiring Rate was also the highest of any sector at 35% growth on April 2017.

Finance – The Finance sector also showed signs of buoyancy in April with the S.A. MoM hiring rate growing 13% after a disappointing March (1%). This sector also achieved the second highest YoY growth (28%) on April 2017.

Hardware and Networking - Hiring in Hardware and Networking performed more poorly than any other sector in April, with a fall in the S.A. MoM Hiring Rate of -4%, well below the 7% average among the 20 sectors that returned significant data. While growth in the YoY Hiring Rate on April 2017 was a positive 9%, this was at the low end of the spectrum among labour market sectors.

Software and IT Services – Software and IT Services also showed limited growth, with a low 2% increase in the S.A. MoM Hiring Rate in April, which follows this sector’s 5% fall in March. YoY the Hiring Rate did not grow versus April 2017.

Energy and Mining – In April, Energy and Mining displayed a strong increase in its S.A. MoM Hiring Rate of 17%, the second highest of any economic sector, overturning a very poor performance in March (a 10% drop in activity). The YoY Hiring Rate in Energy and Mining of 19% growth versus April 2017 was also a significant improvement on March.

Corporate Services – The Corporate Services sector has also picked up considerably since last month, clocking growth in the S.A. MoM Hiring Rate of 12% in April, well above the national average. Corporate Services also recorded 25% growth in the YoY Hiring Rate versus April 2017.

Manufacturing – In April, Manufacturing also turned around a negative outlook with above average growth in S.A. MoM hiring of 10%. The hiring rate grew by 19% YoY versus April 2017.

Recreation and Travel – The Recreation and Travel sector achieved growth in S.A. MoM Hiring Rate of 8% in April, double that of the previous month and slightly above average. YoY the Hiring Rate was up a healthy 22% on April 2017.

Transportation and Logistics – The S.A. MoM Hiring Rate in the Transportation and Logistics sector grew in line with the national Hiring Rate in April, although YoY the Hiring Rate was up 19%.

Healthcare – growth in the S.A. MoM Hiring Rate in Healthcare of 7% in April was also consistent with the change in the National Hiring rate. However, YoY the Hiring Rate in Healthcare was up 18% on April 2017.

Public Administration – As with Healthcare, Public Administration only achieved an level of growth in line with the national Hiring Rate in April, although YoY the Hiring Rate was a more positive, 24% up on April 2017.

Education – The Education sector has performed more poorly than the other public services, with growth in the S.A. MoM Hiring Rate of just 1% in April, the second lowest of all the sectors that reported significant data. The YoY increase in Hiring Rate of 14% on April 2017 was at the low end of the spectrum compared to many areas of the labour market.

Media and Communications – Media and Comms showed signs of a limited pick up, achieving 6% growth in the S.A. MoM Hiring Rate in April, and 14% YoY growth versus the same time last year.

Consumer Goods – Progress in hiring in the Consumer Goods sector was also limited in April, with a below average 6% rise in the S.A. MoM Hiring Rate, although YoY growth of 22% on April 2017 indicates a longer-term improvement.

Retail – The Retail sector is showing a limited pick up in hiring, with a below average 6% increase in the S.A. MoM Hiring Rate in April. There was better news in terms of YoY growth on April 2017, which at 21% was above the national increase of +18%.

Construction – Construction hiring has been erratic since last November and in April the S.A. MoM Hiring Rate rose by the national average among the sectors of 7%, reversing a fall of 2% in March. The Construction Hiring Rate YoY rose an impressive 24% on April 2017.

Real Estate – The performance of the Real Estate sector has also been erratic, with below average growth of just 4% in the S.A. MoM Hiring Rate in April, but YoY growth of 24% on April 2017 outperformed many other sectors.

Entertainment – Hiring in the Entertainment sector showed signs of a pick up, with the S.A. MoM Hiring Rate in April up by an above average 8%. In the longer term, the sector has been making less progress, however, with no change in the YoY Hiring Rate on April 2017.

Design – The Design sector saw growth in the S.A. MoM Hiring Rate of 7% in April. The YoY Hiring Rate in this sector grew a modest 10% versus April 2017, significantly below the national rate.

Nonprofit – The Nonprofit sector has slowed considerably with growth of just 1% in the S.A. MoM Hiring Rate in April representing a fall on March (3%). YoY the Hiring Rate in this sector grew 13% versus April 2017, which was positive but still below the national rate.

Migration

Our April report revealed that migration into the UK has been falling steadily since the referendum on the UK’s membership of the European Union, and that in Q1 2018 the UK became a net exporter of talent. Migration into the UK from the EU27 countries has been falling steadily, and in the first quarter of this year more professionals left for the EU27 than entered the UK from the EU27. The changes that we have seen in migration since the referendum are not limited to movements from or to EU27 nations: there has also been a reduction in migration to the UK from the rest of the world.

In April the net flows of overseas workers out of the UK that was evident over the first quarter continued, with only four out of 12 UK regions and nations being net attractors of international talent: the South East and South West, the East of England and the West Midlands.

London remains the most attractive region for international arrivals by volume, and continues to attract almost double the amount of overseas talent than its nearest rival Scotland, but Scotland continues to attract a marginally higher proportion of its new arrivals from abroad. In London, which became a net exporter of talent to the EU27 in Q1 2018, the net loss of international talent decreased in April.

Outward migration from the UK’s regions

London, the South East and the East Midlands continue to be the regions from which members are most likely to leave and move to other UK regions or abroad, although in London and the East Midlands departures slowed in April. Domestic migration out of the East of England rose noticeably since March.

Of the three regions with the greatest number of overall departures, only London saw a majority of people who were leaving heading overseas. Similarly, the majority of those leaving Northern Ireland and Scotland also head abroad.

Inward migration to the UK’s regions

In April the East of England displaced the East Midlands to join London and the South East as the top three regions gaining the most members from other UK regions or other countries.

London and Scotland saw the majority of inbound members arrive from another country, but this is no longer the case in Northern Ireland, where since February there has been a shift to a majority arriving from within the UK. Every other UK region also welcomes most of their arrivals from another part of the UK.

Net flows to UK regions

London, the South West and the North West continue to be net recipients of combined domestic and international migration, which in all three regions has picked up slightly since March but has declined overall since the start of the year. Whilst London is losing talent to overseas, domestic migration into the capital continues to make it a net attractor of new migration. The North East continued to see the biggest net outflow of any region in April.

For net domestic migration, London continues to be by far the biggest draw, and the South East and North East remain the regions with most people leaving.

From the perspective of international migration, only four out of the 12 nations and regions were net gainers of international talent in April, compared to nine out of 12 in January. In April, London, the East Midlands, the North East, the North West, Northern Ireland, Scotland, Wales and Yorkshire and the Humber all lost more workers to other countries than they gained.

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.