LinkedIn Workforce Report | United Kingdom | November 2017

Published on Nov 8, 2017

Over 23 million workers in the UK have LinkedIn profiles. This means that we can see where 23 million members of the UK workforce are based, what companies they work for, and when they change jobs. We anonymise and aggregate this data 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 2017. As this is the first Workforce Report for the UK, we have also taken a look at data over the previous twelve months to benchmark our findings and identify trends from a significant year for Britain.

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

Hiring rates shrug off Brexit uncertainties. In September and October the UK Hiring Rate was very strong, up 15% year on year (YoY) in September, and up 16% YoY in October. This, despite near full employment and the uncertainty of Brexit, shows that companies are hiring more workers - a strong sign of confidence in the future.

But Brexit did hit the hiring rate in July 2016 hard. This first Linkedin Workforce Report for the UK provides new insight into hiring activity in the aftermath of the Brexit referendum in the summer of 2016. We would normally expect hiring in July to be high, as businesses take on new staff ahead of the August break, new university graduates enter the workforce, and companies make mid-year adjustments. In 2016 that was not the case: hiring fell 4% from June to July (seasonally adjusted). This could indicate that companies delayed talent decisions in the immediate aftermath of the referendum.

London is not over. There has been much discussion about the future of the city’s place as a financial capital and the attractiveness of the UK to international talent, as well as debate about the cost of living and the quality of life the capital offers. However, our data shows that London is a talent magnet for British residents and international migrants alike. London attracts the largest net flow of both domestic and international migration and London’s Hiring Rate also continues to rise, up 9% YoY.

10 out of the 12 nations and regions that make up the UK are net importers of international talent. Only Northern Ireland and the North East did not draw more international workers than they lost to overseas.

Britain's oil sector is showing signs of recovery. The energy and mining sector has seen a marked increase in hiring as the UK’s oil industry begins to recover - evident in a month-on-month (MoM) increase in the Hiring Rate of 24% in October. The Hiring Rate in October 2017 was 38% higher than the year prior.

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.

Hiring on a national level, and within the nations and regions of the UK, was strong in October compared to this time last year, following a very strong September. The national Hiring Rate was 16% higher this October versus October 2016.

The seasonally-adjusted Hiring Rate was 5% lower than in September, which had been an extremely strong month.

Regional Hiring Rate

Across the UK’s nations and regions, the Hiring Rate was up YoY across the board. The seasonally adjusted MoM figures showed declines in 11 of the 12 nations and regions, with only London bucking the trend. This should be considered in light of a very strong hiring performance across the UK in September 2017.

Notable regional activity this month includes:

London

London saw its Hiring Rate increase by 9%, year-on-year, consistent with the steady year-on-year increases for July, August and September. Looking at the seasonally adjusted data, London was also the only UK region to register a month-on-month increase, which follows the previous two MoM increases for hiring in London. Finance was the strongest sector for new hires in London in October, followed by Corporate Services.

North West – The North West saw its Hiring Rate increase by 19% YoY in October, consistent with the general trend in the region over the previous eight months, when the Hiring Rate has exceeded or equaled last year’s. The seasonally adjusted Hiring Rate was 2% lower in October than September, and was the second strongest performance after London (in terms of month-on-month changes). The North West, with its economic hub in Greater Manchester, exhibited a strong similarity in Hiring Rate performance to Greater London. Corporate Services was the strongest sector for new hires in the North West.

Scotland - Scotland has seen a very strong increase in hiring this year: a YoY increase of 21% was recorded in October and this trend has been positive for the previous eight months. When looking at the seasonally adjusted data, as with almost all the other regions, the Hiring Rate was negative (-8%) following a very strong September. Notably, Energy and Mining was the strongest sector for new hires in Scotland.

Other regions:

East Midlands

The YoY Hiring Rate was up 25% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 7% versus September. Manufacturing was one of the strongest sectors accounting for new hires in the East Midlands during October.

East of England

The YoY Hiring Rate was up 22% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 10% versus September. Corporate services was the strongest sector for new hires in the East of England during October.

The North East

The YoY Hiring Rate was up 24% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 6% versus September. Manufacturing was the strongest sector for new hires in the North East during October.

Northern Ireland

The YoY Hiring Rate was up 24% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 20% versus September.

South East

The YoY Hiring Rate was up 17% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 8% versus September. Software and IT Services was the strongest sector for new hires in September.

South West

The YoY Hiring Rate was up 19% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 8% versus September - corporate services was the strongest sector for new hires.

Wales

The YoY Hiring Rate was up 21% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 5% versus September.

West Midlands

The YoY Hiring Rate was up 19% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 11% versus September - manufacturing was the strongest sector for new hires in October.

Yorkshire and the Humber

The YoY Hiring Rate was up 16% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 5% versus September.

Sectoral Hiring Rates

Deep diving into the Hiring Rate for the UK’s sectors, we get a better understanding of the stand out trends that are impacting how businesses are functioning and professionals are going to work:

Media and Communications

Media and Communications recorded both a YoY increase and a MoM increase in Hiring Rate - both of which are up 7%. This is consistent with what we’ve seen in the media and communications sector over the past six months, with a particularly strong increase in July. The bulk of new hires (over half) were in marketing and advertising companies.

Finance

Finance has seen strong hiring activity, with a 22% increase YoY, also reflected in a 2% MoM increase in October. This is noteworthy given that Finance was one of the sectors that saw a dip in the hiring rate in the immediate aftermath of the EU Referendum. The bulk of hires in October in this sector was driven by banking and financial services firms (these made up over half).

Software and IT Services

Hiring rate increased 12% YoY in Software and IT Services. YoY growth has been recorded for three of the past four months, with the most noteworthy increases in July and September - 15% and 19% respectively. Hires in this sector were made across a number of companies, predominantly IT services firms and computer software companies.

Retail

The Hiring Rate for October in Retail showed a strong YoY increase this month, at 10.5%. This is consistent with the general trend over the past eight months, where YoY growth has been strong, particularly in July and September. The MoM Hiring Rate is down 1.5%, making it one of the more successful sectors by this measure.

Manufacturing

Manufacturing performed stronger this year than last, with Hiring Rate increasing 14% YoY in October. However, we did see a MoM decrease of 7%, which is worth noting. YoY increases have been consistently strong for the previous 10 months, which makes the manufacturing sector stand out from other sectors, and may be related to the fall in the value of the GBP in the summer of 2016. The majority of hires in October were driven by the automotive industry, mechanical and industrial engineering companies, and electrical and electronic manufacturing firms.

Energy and Mining

A large MoM increase in the Hiring Rate for Energy and Mining may be related to the rebound of oil prices over the last few months. The YoY increase for Energy and Mining is over double the national average, suggesting a strong focus on hiring. Moreover, the seasonally adjusted data suggests a strengthening Hiring Rate in this sector at 24% MoM. Well over half of new hires in this sector were in oil and energy companies. As noted above, the Hiring Rate has been consistently higher than last year since January, which is also the same point when the price of oil began its recovery.

Construction

There has been significant growth in the Hiring Rate for the construction sector - a sector that has been demonstrating YoY increases for 10 of the previous 12 months, with particularly strong increases in March, May, July and September. The bulk of new hires in this group were in traditional construction companies, suggesting a continued appetite for housebuilding, commercial premises and infrastructure.

Healthcare

The Hiring Rate in Healthcare is up 13% YoY, a trend that has broadly persisted over the last seven months. This sector is noteworthy, given the relatively smaller MoM decrease, when we look at the seasonally-adjusted data. The bulk of new hires in this sector were in hospitals, healthcare facilities, and the pharmaceutical industry.

Other Sectors:

Consumer Goods

The YoY Hiring Rate in Consumer Goods was up 6.6% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 5.3% versus September.

Corporate Services

The YoY Hiring Rate in Corporate Services was up 14.2% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 5% versus September.

Design

The YoY Hiring Rate in Design was up 11.4% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 8.2% versus September.

Education

The YoY Hiring Rate in Education was up 29.1% in October 2017, while seasonally adjusted MoM Hiring Rate was down 23.8% versus September.

Entertainment

The YoY Hiring Rate in Entertainment was up 2.3% in October 2017, while the seasonally adjusted MoM Hiring Rate was up 0.9% versus September.

Hardware / Networking

The YoY Hiring Rate in Hardware/Networking was up 3.6% in October 2017, while the seasonally adjusted MoM Hiring Rate was up 19.1% versus September.

Legal

The YoY Hiring Rate in Legal was up 21.8% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 0.7% versus September.

Nonprofit

The YoY Hiring Rate in Nonprofit was up 14.1% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 1.7% versus September.

Public Administration

The YoY Public Administration Hiring Rate was up 23.7% in October 2017, while the seasonally adjusted MoM Hiring Rate was up 5.6% versus September.

Real Estate

The YoY Real Estate Hiring Rate was up 25.9% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 4.2% versus September.

Recreation and Travel

The YoY Recreation and Travel Hiring Rate was up 18.3% in October 2017, while the seasonally adjusted MoM Hiring Rate was down 5.9% versus September.

Transportation and Logistics

The YoY Transportation and Logistics Hiring Rate was up 14.9% in October 2017, while the seasonally adjusted MoM Hiring Rate was up 10.5% versus September.

Migration

Methodology – Migration

In our migration analysis, members who indicate a change in thesuper location of their place of employment on their profile are considered a migrant.

For this report, we created an analysis pool of members who had indicated that they moved job location within or to the UK from another part of the UK/another country over a 12-month time period. We then measured this number against the number of LinkedIn members in each of the UK’s nations and regions.

London heads into Brexit with the most to lose, as the capital attracted more international than domestic talent over the past twelve months. London goes into Brexit negotiations as the UK’s talent and hiring hub. Our data shows that it is the UK’s most global region, with more inward and outward international, rather than domestic, migration. In fact, its international migration is at almost twice the level of the next highest UK region.

10 out of the 12 nations and regions of the UK are net importers of international talent. Only Northern Ireland and the North East failed to draw more international workers than they lost workers to overseas.

Outward migration from the UK’s regions

London, the East Midlands, and the South East are the regions from which members are most likely to move to other UK regions or other countries.

Of those outflows, only London saw a majority of its departing members head for another country, while every other UK region saw most departing members head for another UK region.

Inward migration to the UK’s regions

London, the East Midlands, and the South East are also the regions gaining the most members from other UK regions or other countries.

Of those inflows, London and Scotland saw the majority of inbound members arrive from another country, while every other UK region saw most departing members head for another UK region.

Net flows to UK regions

London, the South West and the North West are net recipients of combined domestic and international migration, while the North East has seen the biggest net outflow.

For domestic migration, London remained the biggest draw and the South East was the top place to leave.

From the perspective of international migration, the UK remains very attractive, with 10 out of the 12 UK nations and regions seeing inward net flows of international migrants, with Northern Ireland and the North East losing more workers to other countries than they gained.