The UK job market remains in a challenging state, as many experienced professionals find themselves grappling with underemployment. Mid-career professionals, including those in senior human resources positions, are increasingly affected by these conditions. Economic uncertainty, exacerbated by Rachel Reeves's budget announcement last October, has led to an increase in employer costs and a subsequent drop in job opportunities. The influence of artificial intelligence has further diminished the value of roles that traditionally required professional expertise.
Since last summer, the number of advertised jobs and responses to applications has seen a sharp decline. This trend is particularly noticeable in fields such as design, entertainment, marketing, human resources, and IT. Consequently, highly skilled individuals are often compelled to accept low-paying, part-time jobs for which they are significantly overqualified. The demand for permanent staff has contracted consistently over the past 17 months, as the labor market becomes saturated with excellent candidates at a time when hiring budgets are constrained.
The job market's competitiveness is palpable, with hundreds of applicants vying for each available role. Despite possessing relevant qualifications and experience, many job seekers struggle to secure well-paid work. Highly trained graduates face similar challenges in finding permanent employment, frequently resorting to applying for entry-level positions. Research conducted by KPMG and the Recruitment and Employment Confederation highlights that January's vacancies were at their weakest level since August 2020.
“This is the worst I’ve ever experienced in the job market, including the aftermath of the 2008 financial crisis, which also left me unemployed for a time, and the pandemic,” – David Hoghton-Carter
The current landscape has forced many job seekers into positions that do not align with their qualifications. Some have taken up roles in pubs or other low-paying jobs despite holding higher qualifications. The trend is alarming as companies increasingly turn to AI-generated content, such as graphic design, reducing the need for human employees.
“The job market is nightmarish. Competition is extreme, it’s slim pickings for good roles that suit my skillset, and employer expectations are through the roof,” – David Hoghton-Carter
Competition within the job market is fierce, with some roles attracting between 500 to 1,600 applicants. Danielle, an experienced professional, shared her frustration with the current situation:
“A couple of years back, I was inundated with offers. This time, I’ve been actively looking for a new role for almost four months and there are barely any openings. For every job there are 500-1,600 applicants you need to compete with. There just aren’t enough roles to go around.” – Danielle
In addition to the intense competition, budget constraints have led many employers to reduce working hours as a cost-cutting measure. Violeta Munteanu highlighted this issue:
“My working hours were reduced due to current budget [constraints]. Many of my friends had their working hours cut to reduce [costs].” – Violeta Munteanu
The challenge extends beyond securing full-time positions; even part-time and entry-level jobs attract a multitude of candidates. Sam shared his experience of receiving no responses on online job applications:
“No replies on any online job applications despite tailoring CV to the job requirements – for instance, for my Subway application, I put forward my previous McDonald’s work as qualifications instead of my A-levels.” – Sam
Many organisations appear to be prioritising cost-saving measures over maintaining a robust workforce. Marina expressed concerns over this trend:
“It’s a race to the bottom by organisations and businesses either desperate to save money or prioritising their profit margins.” – Marina
The challenges are particularly stark for individuals like Richard, who have experienced prolonged unemployment:
“I haven’t had a job in four years,” – Richard
Despite his qualifications across various fields, Richard has struggled to secure employment after applying for approximately 1,500 jobs:
“I’ve applied for about 1,500 jobs. I’m qualified in various things. I’ve applied for everything from being a cleaner in a factory to things associated with my degree.” – Richard
For younger job seekers, such as a 25-year-old woman from Yorkshire, the future remains uncertain:
“I’m worried about my future,” – A 25-year-old woman from Yorkshire
The saturation of the labor market with qualified candidates coincides with a significant reduction in vacancies since the initial pandemic job cuts. Many candidates have spent nearly four months actively seeking new roles without success.