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Artificial intelligenceLatest NewsJob creation and lossesRecruitment & retentionHR Technology

Hiring challenges reported as applicant numbers grow

by Kavitha Sivasubramaniam 15 Jan 2025
by Kavitha Sivasubramaniam 15 Jan 2025 Shutterstock / PeopleImages.com - Yuri A
Shutterstock / PeopleImages.com - Yuri A

Both employers and applicants have highlighted an increase in recruitment challenges, new data from LinkedIn has shown.

Research by the professional networking platform showed that while 61% of UK workers intend to look for new roles in 2025, 54% of jobseekers and 79% of HR professionals believe the hiring process has become more difficult.

Around two in five (41%) of candidates are applying for more jobs than ever but are not hearing back as much. A similar proportion (42%) of HR professionals claim fewer than half of applications meet the role requirements listed, while 23% are spending three to five hours daily looking at applications.

According to LinkedIn, the mismatch is in part due to changes in the roles and skills businesses now need, with its data indicating that almost 55% of positions on its UK Jobs on the Rise list did not exist 25 years ago.

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Its latest Work Change Report also found that global AI talent recruitment soared 300% in the past eight years, with AI developments expected to accelerate a shift in skills needed for jobs which are currently predicted to change 70% by 2030.

Among the HR professionals surveyed, their top challenges were identified as finding applicants with the right technical and soft skills, cited by 49% and 42% respectively. More than three in five (61%) think there’s a mismatch between jobseekers’ skills and those required by their organisation.

Nearly half (45%) believe access to new hiring technology, including AI-driven tools, would make the process faster, while 67% think it would make the process easier.

To address the skills gap, employers are also planning to upskill their existing workforce in areas such as soft skills, AI and sustainability, cited by 68%, 65% and 64% respectively.

Janine Chamberlin, head of LinkedIn UK, said: “With work and hiring changing so rapidly – the skills needed for jobs are expected to change 70% by 2030 – businesses must find a way to bridge any gaps within their organisations. This is actually a very exciting opportunity for both jobseekers and leaders to think differently about skills and stay competitive. Skills-based hiring will be crucial for companies looking to stay ahead, and LinkedIn’s new job match tool is designed to streamline that process, by closely matching jobseekers with the right roles and skills that employers are looking for”.

James Milligan, global head of technology, engineering and contracting at Hays, added: “Whether you’re a business looking to get the upper hand on competitors, or a jobseeker looking for your next role, you will be left behind if you don’t embrace new technologies like AI. Look at the digitisation of work over the past years. If a business failed to digitise and was still using older methods, like filing cabinets and pen and paper, they are highly likely not to exist today. The same will be true of candidates and organisations who do not embrace AI. They will fall behind. The true impact will probably be felt after 2030, but the preparation needs to be made now. Those who embrace it will be winning later on, whilst those who ignore it, will likely be out of business in a few years’ time.”

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Kavitha Sivasubramaniam

Kavitha Sivasubramaniam is an experienced journalist, editor and communications professional who has been working in B2B publishing for more than 17 years. After graduating from Bournemouth University with a degree in Multi Media Journalism, Kavitha started her career in local and regional newspapers, before moving to consumer magazines and later trade titles, as well as PR. Specialising in pay and reward, she has been editor of a number of HR publications including Pay & Benefits, Employee Benefits, Benefits Expert, Reward and CIPP’s membership magazine, Professional. In June 2024, she won Pay, Reward and Employee Benefits Journalist of the Year at the Willis Towers Watson media awards. She was also named one of Each Person’s top 20 influential HR bloggers and managed a highly commended content team of the year in 2019.

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