United Kingdom

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Overall Score

6.2 in 2015 6.1
0 2.5 5 7.5 10

Key Finding

With the economy recovering, wage pressures are evident particularly for high-skill roles. On the other hand, the buoyant economy has reduced both long-term and structural unemployment. Uncertainty over the UK’s future in the aftermath of the Brexit vote casts doubt on the labour market outlook in the near future.

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
4.4
Labour market
participation
6.7
Labour market
flexibility
5.3
Talent
mismatch
9.7
Overall wage
pressure
5.1
Wage pressure in
high-skill industries
7.5
Wage pressure in
high-skill occupations
5.0

COUNTRY OVERVIEW

View from the ground

Despite a sustained period of uncertainty due to Brexit, the UK remains an attractive place to do business and to work. Skills shortages remain prevalent, particularly in technical engineering roles, specialist technology and qualified finance roles. In these areas businesses are struggling to attract sufficient numbers of qualified and skilled workers, which is impacting on productivity and business growth. Many of these companies are continuing to invest in STEM and diversity initiatives in order to improve their talent pipeline and combat future skills shortages. Overall, wage growth is steady but candidates in skills-short areas are enjoying significant salary increases.

Nigel Heap, Managing Director, Hays UK

Nigel Heap, Managing Director, Hays UK

Country Profile

Supported by a narrow majority, UK voters decided to exit from the EU in mid-2016.

In the near term, the referendum result may slow domestic demand growth as greater uncertainty and lower confidence affect households and companies’ decisions. This may effect labour demand, in terms of recruitment and average hours worked.

The latest CBI survey suggests 18 percent of industrial firms’ output would be limited by shortages of skilled staff. This is also true in the service sector, where 35 per cent of service sector firms said the availability of professional staff is likely to limit their ability to increase their level of business over the next year.

Nigel Heap, Managing Director, Hays UK

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