Magnit Unveils UK Labour Market Outlook Amidst Economic Challenges and AI Revolution

London, UK (29 October 2024) - Magnit™, the industry's first outcome-driven, AI-powered workforce management platform provider, today released its Autumn/Winter 2024 UK Labour Market Report. Analysing data points across various metrics, the report revealed a complex interplay of economic resilience and ongoing challenges, with AI adoption and onshoring trends reshaping industries amidst a tight job market.

The report also spotlights the top skills sought across the UK, with high-demand positions of accountants, IT project managers, and cybersecurity engineers reflecting the increasing competition for specialised talent amid efforts to combat skills shortages.

"The report indicates that the UK's labour economy faces a multifaceted landscape, with sluggish GDP growth contrasting against areas of intense hiring competition," says Dustin Burgess, Senior Vice President of Strategic Advisory at Magnit. "Organisations must navigate this complexity by rethinking their value proposition to land top talent while also redeploying and upskilling existing workforces wherever possible."

The analysis from Magnit reveals key market trends that present a remarkable shift in the UK labour market and the challenges and opportunities ahead. Findings include:

• Slow growth amid economic challenges: The UK faces sluggish GDP growth, with projections indicating less than a 1% increase for the year. This slow growth is attributed to several factors, including the aftermath of Brexit and the need for significant capital and productivity enhancements.
• AI driving significant job creation: AI advancements are expected to create 610,000 new jobs by 2028, with the IT & telecommunications sector predicted to see the largest job growth, adding 320,000 roles to support AI technologies. Additionally, the UK has twice as many AI-based companies than any other European nation.
• High competition for specialised roles: Accountants, IT project managers, and cybersecurity engineers are among the most difficult roles to source, with nearly half or more of workers in these roles being approached by recruiters quarterly.
• Skills with salary increases: Content Strategy (+8% YoY), Business Intelligence (+8% YoY), SharePoint Online (+4% YoY), Snowflake (+4% YoY).
• Onshoring reshaping industries: The construction sector is adapting to onshoring trends, encouraging greater investment in domestic skills and resources, aiming for greater autonomy and stability in its operations. Western Europe's filled contingent engagements increased from 6.8% to 13.9% of the global total in manufacturing, of which the UK accounted for two-thirds of this volume, Ireland for about 15%, and Germany for 6%.
• New employment laws poised to make an impact: The UK's shifting regulatory environment under the new Labour Party government is likely to influence hiring practices, with new employment laws impacting skill requirements and compliance.

"The last several years delivered a barrage of challenges for organisations, but the UK emerges with a reinforced mandate for change. With the right data-backed strategies, companies across the region can attract highly skilled talent and remain competitive amid evolving economic indicators," concludes Burgess.

Magnit's Autumn/Winter 2024 UK Labour Market Report

This report was developed by Magnit’s Strategic Advisory team, which analysed proprietary data aggregated from hundreds of Global 2000 client programmes to provide actionable insights on the UK's talent landscape.

To learn more about the latest UK labour market trends, including in-demand job roles/skills and strategies for addressing the impact of new Labour Party legislation, download the full report.

About Magnit™

Magnit™ is a global leader and pioneer in contingent workforce management. Our industry-leading Integrated Workforce Management (IWM) Platform is supported by 30+ years of innovation, modern software, proven expertise, and world-class data and intelligence. It enables companies to optimise talent and diversity goals while achieving operational and financial success. With Magnit, companies can adapt quickly to the evolution of work to grow their extended workforce with greater agility, transparency, and speed. magnitglobal.com

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