Hiring holds firm as UK businesses fight for skilled workers

UK employers are continuing to recruit despite persistent economic uncertainty, with companies taking a more selective approach to hiring and directing investment towards skills considered critical to productivity and growth.

More than a third of UK hiring managers — 34 per cent — expect to increase permanent headcount before the end of the year, according to research by Robert Half. A further 25 per cent plan to expand contract hiring, while 24 per cent expect to increase project-based recruitment.

The figures, based on a survey of 500 UK hiring managers, suggest the labour market is not so much contracting as becoming more targeted. Employers are concentrating recruitment on areas where specialist skills remain scarce, including technology, cybersecurity, finance, risk and compliance, legal services, digital marketing and customer support.

Technology remains the strongest area of demand. Almost half — 47 per cent — of employers in technology and IT plan to increase permanent recruitment, while 29 per cent expect to expand contract hiring and 30 per cent project-based recruitment.

Finance and accounting follows, with 38 per cent planning to increase permanent hiring. Marketing and creative roles are also seeing continued demand, although at lower levels.

The response to skills shortages is extending beyond recruitment. Six in 10 small and medium-sized businesses and 64 per cent of larger organisations identify training, upskilling and reskilling as important tools for addressing workforce pressures. Some 36 per cent are also planning to redesign roles and working practices.

Matt Weston, senior managing director for the UK and Ireland at Robert Half, said employers were prioritising “specialist talent” while investing in workforce development.

The research also points to intensifying competition for scarce expertise, with 26 per cent of employers expecting greater competition for highly skilled workers.

Artificial intelligence is adding to the shift rather than eliminating demand for skilled employees, with companies increasingly seeking workers who can combine technical capabilities with judgement, communication and critical thinking.

For employers, the message is becoming clearer: uncertainty is restraining indiscriminate hiring, but it is not stopping investment in people where businesses believe skills can deliver measurable growth.