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
So, 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 I think there is a really interesting issue for recruiters and employers.
1. Employers want experience — but where does experience come from?
This 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.
This creates a vicious circle:
No job...no experience...no experience...no job.
The Government's recent analysis specifically identifies this problem: employers are favouring candidates who already possess the operational skills that many entry-level candidates haven't yet had the opportunity to develop.
2. AI is changing the entry-level market
This is particularly interesting.
Historically, many young people entered professional careers by doing relatively routine tasks:
Junior, learn the job, gain experience, progress.
AI is increasingly capable of doing some of those junior-level tasks.
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 it rightly says this doesn't prove AI is the cause.
That potentially creates a new problem:
If AI removes some of the traditional junior work, where does the next generation get its experience?
That's something recruiters and employers should be thinking about very seriously.
3. NEET doesn't necessarily mean "doesn't want to work"
This is an important misconception.
Of the approximately 1.01m NEET young people, only around 400,000 are unemployed.
Around 613,000 are economically inactive. (ONS)
There are numerous reasons why somebody can fall into the NEET category, including long-term health problems, caring responsibilities and other circumstances.
So treating all NEETs as a single group of young people who "can't be bothered to work" is both inaccurate and unhelpful.
But there's another side to this...
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)
So, we have this strange situation:
Employers:
"We can't find people with the skills we need."
Young people:
"Nobody will give me the opportunity to develop those skills."
And both can be telling the truth.
That's where recruitment has become harder.
The recruiter increasingly has to bridge the gap between what the employer wants today and what the candidate could become tomorrow.
Five years ago, during the exceptionally tight post-pandemic labour market, employers were often forced to be more flexible.
Today, with 2.5 unemployed people per vacancy, employers have more choice. (ONS that makes recruitment easier for employers in one sense, but harder for recruiters and candidates in another.
I think there's a big opportunity here for recruiters
Rather than simply asking:
"Does this candidate have the experience?"
recruiters should increasingly be asking:
"Does this candidate have the ability to acquire the experience?"
For SMEs in particular, 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.
