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 September 2018. This is our twelfth Workforce Report for the UK, and it takes a comparative look at both data from September 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 September 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 September:

• Graduate recruitment is up over the last three years. As this report covers the period where graduate recruitment peaks, we’ve done some additional analysis of this area. Graduate recruitment represents 12.5% of all new job starts in September 2018, the highest that it has been in the last three years (11.1% in 2016, 12% in 2017). Professional services is the leading sector for recruiting new graduates, but both Finance and Software and IT services saw increases in their share of the new graduate workforce in 2018.

• The hiring rate hit its highest level so far this year. Growth in the Seasonally Adjusted (S.A.) Month on Month (MoM) National Hiring Rate of 8.6% in September reversed a decline of 4.1% in August. This spike was expected after recruiters had deferred hiring over the summer and due to seasonal growth in graduate entry jobs.

• Hiring is stronger than it was at this point last year. Year on Year (YoY), hiring rates were up 8.2% on September 2017, continuing the upward trend of August and consistent with positive increases throughout the year. The strong hiring rate is a further indication that more people are taking up new jobs than last year.

• Talent continues to leave the UK. Nine out of the 12 British nations and regions again reported net movements of talent overseas in September. For the first time, the South East overtook London as the region from which members are most likely to leave and move to other UK regions or abroad.

• London remains a net loser of international talent. The capital has been experiencing net outflows of foreign workers for seven months, but the rate at which it is losing talent overseas is slowing. In September, for the second consecutive month, the majority of new arrivals to London came from within the UK.

• Overseas workers are leaving the North of England. The North East, Yorkshire and the Humber and the North West are experiencing the largest net international outflows of workers, while the South East is experiencing the largest overall net movement of people moving out to other parts of the UK or abroad. The East of England and the East and West Midlands are the only regions enjoying net inflows of talent from abroad.

• Hiring grew in every part of the UK. The average increase in hiring MoM across the 11 regions that returned significant data in September was over 10%. Wales and Scotland recorded the largest growth rates of 15% and 14% , respectively. For the second month in a row, London was at the bottom of the chart with MoM growth of just 2%. Hiring in the capital fell YoY by 2%, the only region to experience a decline on the same month in 2017. It has enjoyed YoY growth in the hiring rate in only two months of 2018 so far.

• Hiring grew in most labour market sectors. The S.A MoM Hiring Rate in September increased in 17 of the 20 labour market sectors that returned significant data. Education outperformed all other sectors with 27% growth, in an expected spike at the start of the academic year. Other sectors that achieved strong MoM growth were Real Estate (16%), Corporate Services (15%), and Consumer Goods and Construction (both 14%). The lowest rates of growth were in Entertainment (down 4%), Energy and Mining (down 3%), and Media and Communications (down 2%).

• Hiring is up across all sectors compared to last year. In September, every labour market sector grew in comparison to the same month last year.  The top performer among those that returned significant data was Public Administration (up 19%), indicating stronger hiring in the public services compared to last year. Similarly, Healthcare grew 15% on September last year. Other strong YoY performances were achieved in Real Estate (up 17%) and Energy and Mining (up 16%).

Graduate Recruitment in 2018

As this report covers the September spike in hiring, we’ve done some additional analysis into the extent to which graduate recruitment contributes to this, looking at where the UK’s graduating class of 2018 is heading to start their careers, and which sectors are most dependent on graduate recruitment for new talent.

We define new graduate hires as someone who completed their most recent degree from a university or college in the calendar year, and who have started a new job.

Graduate recruitment is up

The share of hiring being filled by new graduates starts to increase in June each year, and continues to rise to a peak in September, before falling back toward the end of the year.

Graduate recruitment is increasing as a share of new job starts. In September 2018, new graduate hires represents 12.5% of all new job starts, an increase on the last three years (11.1% in 2016, 12% in 2017). Over the whole year, the share of jobs being filled by graduate recruitment is also up, from 5.7% in 2016, to 6.3% in 2017, to 6.7% in 2018.

It should be noted that this is occuring at the same time as an expansion of total hiring (see hiring rate below), so we are seeing a larger share of a larger total of new job starts being filled by new graduates.

The most popular industries for new graduates

The top sector for graduate recruitment over all three years has consistently been Corporate Services. The share of new graduates going to corporate services is essentially unchanged, at around 11% across the period.

Second is Finance, which is increasing its share over time - 8% of graduates starting a new job in the same year went to Finance in 2016, a figure which has now increased to 9.5% in 2018 (up 18%). Third is  Software and IT services, which is also hiring a greater share of new graduates, up from 7.7% in 2016 to 9.4% today (up 22%).

It was also notable that Manufacturing and Construction are hiring an increasing share of the new graduate workforce. Hiring in Manufacturing is up from 5.2% to 7% (up 35%), and Construction is up from 3.2% to 4.7% (up 48%, the largest percentage change of any sector).

Notable falls in share of new graduate hires are in Media and Communications (down from 9.5% to 6.6%, a fall of 30%), Legal (down from 4.2% to 3.3%, a fall of 20%) and Design (down from 3.1% to 2%, a fall of 35%).

Which sectors depend most on graduate recruitment?

Another way to look at the data is to look at the percentage of hires in each sector over a year that are new graduates (as opposed to non-graduates, or existing experiences hires who may or may not have a degree).

Arts tops the table, with 10.5% of hires in 2018 being new graduates. Joint second were Education and Design, both on 9.9%, and Legal came in third on 9.7%.

Changes in this measure may reveal a shift to or from graduate recruitment to meet the sectors talent needs. In the UK as a whole, new graduate hiring is representing a larger share of all new job starts in 2018, rising from 5.7% in 2016 to 6.7% today. This is good news for people finishing university courses, as the tight labour market is making it easier for them to get work.  

Education, Finance, Legal, and Public Administration all saw big increases in the share of hiring made up of new graduates over the last three years. New graduates joining these sectors may be benefiting most from the current labour market.

Sectors seeing the smallest increases were Construction, Retail, and Media and Communications. New Graduates joining these sectors are benefiting less from the current labour market.

The Hiring Rate

The S.A. MoM National Hiring Rate in September was up 8.6% on August, reversing last month’s overall decline and resuming an upward trend visible since May to achieve the highest monthly hiring rate recorded so far this year.

YoY hiring nationally rose by 8.2% on September 2017, continuing the upward trend of August and providing a further indication that more people are taking up new jobs than last year. It is the highest YoY growth so far, and confirms a rising trend overall since February.

Regional Hiring Rates

The S.A. MoM Hiring Rate rose in all of the UK nations and regions in September, with an average increase across the 11 regions that returned significant data of over 10%. Wales and Scotland recorded the largest increases MoM of 15% and 14%,  respectively, with London at the bottom of the chart for the second month in a row with growth of just 2%.

London was again the only region to register a decline in YoY growth in hiring compared with September 2017, albeit by only 2%. It is the third month in succession that hiring has fallen in the capital in YoY terms. Scotland and the North East registered the most significant YoY increases in hiring compared to September last year of 15% and 14%, respectively.

Notable regional activity this month includes:

London – Although the S.A. Hiring Rate in London grew MoM by 2% in September, this was the lowest rate of any UK region and well below the regional average of 10%. The trend has generally been erratic in the capital since May and it is being outperformed by other parts of the country. YoY hiring in London fell versus September 2017 (down 2%), a slightly higher fall than in the previous month. The top sectors for new hires were Finance, Corporate Services, and Software and IT Services.

Wales – Wales achieved impressive growth in the S.A. MoM Hiring Rate in September of 15%, the highest of any region in the UK and well above the regional average. YoY the picture is also looking strong, with hiring growing by 13% compared to September 2017, well above the 8% regional average for the month. Hiring was most healthy in Corporate Services, Education, and Manufacturing.

Scotland – Scotland shook off a period of sluggish growth by achieving S.A. MoM growth in September of 14%, the highest in the UK after Wales. This reverses the poor performance of August (down 6%). In September, Scotland also achieved the highest growth in YoY hiring  (up 15%) of any part of the UK compared to the same month last year, almost double the regional average. The most popular hiring sectors were Finance, Corporate Services, and Energy and Mining.

The North East – The North East experienced welcome growth in the S.A. MoM Hiring Rate in September, which rose by 13%, the third highest of the regions that returned significant data. After Scotland, the North East also recorded the highest YoY Hiring Rate of any UK region versus September 2017, up by 14%. The main sectors for hiring were Corporate Services, Manufacturing, and Education.

The North West – The S.A. MoM Hiring Rate in the North West grew by 8% in September, although along with a similar rate of growth in the South East this was at the bottom of the scale nationally and only London grew by less. YoY, the Hiring Rate grew by the national average of 8% compared with September 2017. The top hiring sectors were Corporate Services, Education, and Manufacturing.

The East Midlands – Healthy growth in the S.A. MoM Hiring Rate of 13% in September was also recorded in the East Midlands, reversing the decline of August. YoY hiring rose by the regional average of 8% versus September 2017. Manufacturing, Corporate Services, and Education were the busiest hiring sectors.

South East – The S.A. MoM Hiring Rate in the South East grew by 8% in September, putting the region’s performance at the lower end of the chart. Growth YoY was a modest 4% compared to September 2017, also below the regional average and at the lower end of the scale. Corporate Services, Education, and Software and IT Services were the top sectors for new hires.

The East of England – The East of England registered 9% growth in the S.A. MoM Hiring Rate in September, overturning a fall of 8% in August that had been the second highest decline of any region in the UK. In September, the YoY Hiring Rate grew by just 2% compared to the same month in 2017, alongside London the second lowest rate of any region. Corporate Services, Education, and Software and IT Services attracted most new hires.

South West – The S.A. MoM Hiring Rate grew by 11% in the South West in September, slightly above the regional average. The Hiring Rate was up YoY by 9% versus September 2017, maintaining a positive performance the previous month. Corporate Services, Education, and Manufacturing were the most popular hiring sectors in the region.

The West Midlands – The West Midlands achieved growth of 10% in the MoM Hiring Rate in September, the regional average, and the YoY Hiring Rate increased by a near-average 7% compared with the same month in 2017. There were most new hires in the Manufacturing, Corporate Services, and Education sectors.

Yorkshire and the Humber – The S.A. MoM Hiring Rate also grew by the regional average of 10% in Yorkshire and the Humber in September. It enjoyed continued YoY growth in September of 10% on the same month last year, which maintains the strong performance of August (16%). Most new hires were in Education, Corporate Services, and Manufacturing.

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 changes that have been taking place. Of the 20 labour market sectors that returned significant data in September, 17 registered growth in the S.A MoM Hiring Rate in September, a dramatic reversal of the position in August when hiring in 15 sectors fell. Overall, the average MoM change across all the sectors in September was 7.6%. YoY, every sector of the labour market grew in comparison to the same month last year.

Education – Education outperformed all other labour market sectors in September, registering 27% growth in the S.A. MoM Hiring Rate. This should come as little surprise, given the start of the new academic year. In yearly terms, growth was less dramatic with a YoY increase of 8% in hiring compared to September 2017. Hiring in Education was particularly strong in London and the South East.

Real Estate – The Real Estate sector continues to experience volatility, with 16% growth in the S.A. MoM Hiring Rate in September after having recorded the largest decline in hiring of any sector in the UK in August of 12%. In keeping with this trend, Real Estate also achieved the second highest level of YoY growth in hiring of 17% versus September 2017.

Corporate Services – The S.A. MoM Hiring Rate grew by 15% in the Corporate Services sector in September, reversing the 8% fall in August that had halted an upward trend since May. The Hiring Rate YoY also registered healthy growth of 14% versus September 2017.

Public Administration – Public Administration registered healthy growth in the S.A. MoM Hiring Rate in September of 12% indicating, alongside the Education sector, that hiring in the public services is healthy. Further evidence of this can be found in YoY growth in the Hiring Rate in Public Administration of 19% versus September 2017, the highest of any sector returning significant data and a further improvement on August (18%).

Entertainment – Hiring in the Entertainment sector is volatile, and in September the S.A. MoM Hiring Rate fell by 4%, the lowest of any sector and reversing its performance in August when it had registered the highest sectoral growth (5%). Growth in the YoY Hiring Rate of just 3% versus September 2017 was again at the lower end of the scale and well below the sectoral average.

Consumer Goods – The Consumer Goods sector registered growth in the S.A. MoM Hiring Rate in September that was double the sectoral average and that, other than a blip in August, resumes a fairly steady upward trend since February. The hiring rate YoY was up 9% versus September 2017, reflecting the average across all sectors.

Construction – The Construction sector reversed its poor performance of August, when the S.A. MoM Hiring Rate fell by 7%, with growth of 14% in September, also double the sectoral average. Growth in the YoY Hiring Rate of 13% versus September 2017 is similar to that achieved in August and well above average.

Energy and Mining – The Energy and Mining sector is struggling to hold its own, experiencing in September the second fall in two months in the S.A. MoM Hiring Rate (down 3%). However, YoY growth in the Hiring Rate in of 16% versus September 2017 was more healthy, and confirms a trend since February of stable growth overall on last year.

Media and Communications – Hiring in the Media and Communications sector remains sluggish, with the S.A. MoM Hiring Rate falling 2% in September, a second decline in two months. YoY growth was more stable at 7% versus September last year.

IT Hardware and Networking – The IT Hardware and Networking sector achieved above average growth in the S.A. MoM Hiring Rate in September of 10%, building on its position as one of only four sectors to grow in August (4%). However, the sector’s growth YoY of 2% versus September 2017 was the lowest of any sector.

Finance – The Finance sector recorded growth of 11% in the S.A. MoM Hiring Rate in September, bringing it back in line with an overall upward trend seen since May. The Hiring Rate YoY registered above average growth of 10% compared to September 2017. Financial hires are still heavily dominated by London.

Manufacturing – The S.A. MoM Hiring Rate grew by 9% in the Manufacturing sector in September, restoring a mostly upward trend since March. YoY this sector grew by 8% versus the same month in 2017, which is consistent with its performance in August.

Healthcare –Healthcare was another public services sector in which hiring was healthy in September, with the S.A. MoM Hiring Rate up by 7%, the sectoral average. However, YoY hiring growth of 15% compared with September 2017 was at the upper end of the chart and well above average.

Software and IT Services – The S.A. MoM Hiring Rate grew by 5% in Software and IT Services in September, resuming a gradual upward trend evident since March. Growth in the YoY Hiring Rate versus September 2017 of 6% was below average.

Transportation and Logistics – The S.A. MoM Hiring Rate grew by a modest 3% in Transportation and Logistics in September, well below the sectoral average. YoY the Hiring Rate was up 6% versus September 2017.

Legal – Growth in the S.A MoM Hiring Rate in the Legal sector was 5% in September, displacing it from the position it achieved in August towards the top of the performance chart. YoY the picture is better, with the Hiring Rate growing by an above average 13% compared with September last year.

Retail – The S.A. MoM Hiring Rate grew by 6% in the Retail sector in September, restoring its smooth upward trend since January. YoY growth in the Hiring Rate versus September 2017 was 8%.

Nonprofit – The S.A. MoM Hiring Rate grew by a low 3% in the Nonprofit sector in September and it is struggling to restore the growth it was achieving in the summer. The YoY Hiring Rate also rose only modestly by 3% compared to the same month last year.

Recreation and Travel – In September, the S.A. MoM Hiring Rate grew by just 2% in the Recreation and Travel sector, well below the sectoral average. Growth of 5% in the YoY Hiring Rate on the same month last year was also at the lower end of the chart.

Design – The S.A. MoM Hiring Rate in the Design sector also grew by a low 2% in September. Growth in the YoY Hiring Rate was also towards the bottom of the chart at 6% versus September 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 September, the trend that has been evident since then continued, with nine out of the 12 British nations and regions again reporting net movements of talent to other countries.

London was again a net loser of international talent in September, although it is still the most attractive region for foreign arrivals by volume, and 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 September the capital continued to lose international talent, although the rate at which it has been doing so has been slowing.

Outward migration from the UK’s regions

In September, for the first time the South East overtook London as the region from which members are most likely to leave and move to other UK regions or abroad. Both regions and the East Midlands are those from which members are most likely to leave, although in September the rate at which this happened slowed compared to August.

Of the three regions with the greatest number of overall departures, only London saw a majority of people who were leaving heading overseas in September. In most of the UK’s regions, the proportion of people departing who head abroad continues to decline.

Inward migration to the UK’s regions

In September, 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 second month in a row, in September the majority of new arrivals to London came from within the UK, and the rate at which they are heading to the capital has increased. 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. Although Scotland is now the only region in which the majority of new arrivals remains international, in September the proportion of migrants arriving from abroad slipped for the second consecutive month.

Net flows to UK regions

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

In terms of net domestic migration, London continues to attract more people from within the UK of any region, and its attraction has grown since the first quarter. 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 September 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), a significant drop from the nine recorded in January. London, the North West, the North East, Yorkshire and the Humber, the South West, the South East, Scotland, Wales and Northern Ireland 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.