Recruitment in the UK is arguably harder now than it was five years ago, but for a very different reason.
The important distinction is that there are more people looking for work, but fewer employers willing to take a chance on inexperienced candidates. That is particularly hurting young people and NEETs (not in employment, education or training).
The numbers tell the story
In 2021, the labour market was extremely tight. Employers were competing for candidates, and recruiters could often persuade businesses to consider people who weren't a perfect fit.
Today the balance has shifted considerably:
Source, ONS & GOV.UK
The market has moved from:
"We need someone, let's find a good candidate."
to:
"We've got 100 applicants, let's find someone who can do the job immediately."
That is a huge problem for someone at the beginning of their career.
Why are NEETs struggling?
There are currently approximately 1.01 million 16 to 24 year-olds NEET in the UK, equivalent to 13.5% of the age group. Of these, around 400,000 are unemployed and actively looking for work, while another 613,000 are economically inactive. (ONS)
And this is where there is an issue for recruiters and employers.
1. Employers want experience, but where does experience come from?
Which is probably the biggest problem.
A young person might have
…but the employer has 50 applications, and one candidate has three years' experience doing virtually the same job.
The employer naturally gravitates towards the experienced candidate, which creates a vicious circle:
No job...no experience...no experience...no job!
The Government's recent analysis identifies this problem: employers favour candidates who already have the operational skills many entry-level candidates haven't yet had the chance to develop, and with the gap in the national minimum wage and the second rung on the career ladder closing year on year, it's not hard to see why.
2. AI is changing the entry-level market
Historically, many young people entered professional careers by doing relatively routine tasks:
Make the tea, get the post, learn the job, gain experience, and progress.
AI is now doing some of those junior-level tasks. In fact, jobs like 1st-line IT support can now be completely carried out by AI.
The Government's analysis found that some of the occupations experiencing the sharpest entry-level declines are also occupations where AI capabilities have become particularly visible, although this doesn't prove AI is the cause in its entirety.
But...if AI removes some of the traditional junior work, where does the next generation start out, and how is that going to affect your business in the future?
3. NEET doesn't necessarily mean "doesn't want to work"
A bit of a stereotypical misconception, perhaps.
Of the approximately 1.01m NEET young people, only around 400,000 are unemployed.
Around 613,000 are economically inactive (ONS).
There are various reasons why someone can fall into the NEET category, like long-term health problems or caring responsibilities, etc.
So forming the opinion that all NEETs are a single group of people who "can't be bothered" is unjust to the many who are desperate to work.
But at the same time, employers still have skills shortages.
Skills England reports that more than a quarter of vacancies are hard to fill because of skills shortages, while demand in priority sectors is expected to grow substantially over the next decade. (GOV.UK)
Employers will say, "We can't find people with the skills we need," and young people will say, "Nobody will give me the opportunity to develop those skills," and that's where recruitment has got harder.
We as recruiters have to try and bridge the gap between what the employer wants today and what the candidate could become tomorrow.
A big opportunity here for employers
Rather than asking: "Does this candidate have the experience?"
Employers should increasingly be asking, "Does this person have the ability to acquire the experience?"
For SMEs, this could mean reconsidering:
Because if employers continue demanding two years' experience for an entry-level job, we risk creating an entire generation that can't get onto the career ladder, and that's not just a problem for young people.
It's going to become a recruitment problem for employers too.
The businesses that start developing their own talent rather than waiting for fully formed candidates may ultimately have the advantage.
