Welcome to Issue 15 of Recruitment Trends & Industry Insights

Hi I'm Joanna Oakley CCWP MCIPD . With over 20 years of experience in the staffing and recruitment industry, I am a Transformation and Change Consultant and the Owner/Director of Argylestone Consulting Ltd.

I help recruitment agencies gain greater operational control and reduce costs.

USA Trends:

USA: The Rising Cost of Talent Acquisition in 2024: Key Trends from Recruitics' Talent Market Index

The cost of attracting talent rose significantly in 2024, according to Recruitics’ latest Talent Market Index. This index measures the cost of bringing a candidate from initial recruitment advertising through to a completed application—and the latest data highlights a sharp increase across multiple industries.

Hospitality, Retail, and Logistics See Major Cost Spikes

The most dramatic increase was seen in the hospitality sector, where the index surged 318.52% year over year. This jump reflects the ongoing recovery and demand for service roles in hotels, resorts, and travel-related businesses.

Adam Stafford, CEO of Recruitics, noted, “We saw a real appreciation in hospitality. While we expect a slight softening in January, the new administration’s policies could introduce additional market fluctuations.”

A key policy factor at play is recent immigration-related executive orders issued by the Trump administration, which could shrink the labour pool. Reduced access to foreign workers may further drive up costs in industries heavily reliant on immigrant labour, such as home healthcare, food service, and housekeeping.

Retail and E-Commerce Recruitment Costs Soar

Retail also saw a sharp increase, with its index rising 288.57% year over year. This reflects retailers’ need to adapt to shifting consumer behaviours and the continued growth of e-commerce. As businesses invest more in securing talent for both in-store and online operations, the cost of hiring has risen accordingly.

Logistics and Transportation Recruitment Remains Competitive

The transportation and logistics sector saw a 116.67% increase in recruitment costs year over year. The ongoing expansion of e-commerce is driving sustained demand for supply chain and delivery roles, keeping competition high for skilled logistics professionals.

Healthcare Hiring Becomes More Expensive Amid Industry Shifts

In healthcare, the cost of recruitment rose 24.76% over the past year. Despite ongoing staffing challenges, healthcare providers are increasingly working to recruit in-house talent rather than relying on staffing agencies, creating more competition in the market. As health systems and recruitment firms battle for the same talent pool, acquisition costs have risen.

What This Means for Recruitment Strategies in 2024

Recruitics compiles its Talent Market Index by aggregating billions of data points from job advertisements, tracking metrics such as cost per click and cost per application across diverse job categories each month. As a provider of programmatic job advertising services, their insights offer valuable guidance for organisations navigating talent acquisition in today’s challenging landscape.

With rising costs across multiple industries, businesses will need to rethink their recruitment strategies—whether by streamlining hiring processes, leveraging automation, or improving employer branding—to remain competitive in attracting top talent.

USA: Job Security Concerns Mount as Workers Brace for 2025: Insights from Staffing Industry Analysts

Amid increasing economic uncertainty, a striking 81% of US workers are worried about losing their jobs in 2025, according to a survey released on 22nd January by résumé advice provider MyPerfectResume. The survey findings, reported by Staffing Industry Analysts, highlight growing anxieties about job security, layoffs, and the evolving nature of work.

Job Loss Fears on the Rise

The survey found that 20% of workers feel “much more worried” about job loss in 2025 compared to 2024, while only 4% expressed no concern about job security in either year. With 76% of workers expecting layoffs to increase and 63% predicting more business closures, the workforce is preparing for a turbulent year ahead.

Upskilling Becomes a Priority

Recognising the shifting job landscape, 61% of workers plan to enhance their skills in 2025, while an additional 31% are considering it. The push for upskilling reflects a proactive response to market instability and the need for career adaptability.

The Rise of Alternative Work Arrangements

With companies reassessing workforce strategies, 85% of workers believe businesses will increasingly rely on freelancers and contract workers, rather than full-time employees. Additionally, 68% foresee the gig economy expanding further in 2025. This shift aligns with broader trends observed in 2023 and 2024, where 49% of workers switched jobs or industries in search of better opportunities.

Burnout and Recession Fears Intensify

Concerns about economic downturns persist, with 92% of employees fearing a recession in 2025. Nearly one-third expect the labour market to worsen, while 57% predict job hunting will be as difficult or even harder than in 2024.

At the same time, workplace stress is set to rise. 52% of workers expect burnout rates to increase, with job insecurity cited as the leading cause by 43% of respondents.

Return-to-Office Mandates Expected to Grow

Despite the widespread adoption of remote and hybrid work models, 88% of workers anticipate more companies will require employees to return to the office in 2025. This reflects a continued corporate push for in-office collaboration amid changing economic and operational priorities.

Adapting to Uncertainty: Expert Advice

Jasmine Escalera, career expert at MyPerfectResume, advises workers to navigate 2025 with resilience and adaptability:

“Facing an unpredictable labour market, workers must approach 2025 with a mindset of resilience and innovation. Exploring new career pathways, staying informed about industry trends, and building a strong professional network can provide the stability and confidence needed to thrive in uncertain times.”

Final Thoughts

The workforce is bracing for an unpredictable and challenging 2025, but those who proactively invest in upskilling, networking, and career agility will be best positioned to weather the storm. Businesses, in turn, must rethink talent strategies to attract and retain skilled workers in this evolving employment landscape.

This article is based on insights from Staffing Industry Analysts, referencing a survey conducted on 22nd December 2024, with responses from 1,115 US workers.

UK Trends:

UK: Gender Pay Gap Progress Stalls: Equal Pay Still 40 Years Away

According to a recent People Magazine article by Isabel Jackson, new research by Isio has found that a quarter (23%) of organisations have made no progress in closing the gender pay gap since mandatory reporting began in 2017. If the current slow rate of change continues, equal pay will not be achieved until 2065.

Key Findings:

• Women earned 12.5% less per hour than men in 2023-24—the smallest gap recorded since mandatory reporting began.
• Despite this, the highest-paid roles remain male-dominated, with 59% held by men and only 41% by women.
• Separate research by the Global Payroll Association found that the gender pay gap widened in 2024 to 13.8% (up from 13.2% in 2023).
• In 2024, men’s average hourly salary increased to ￡23.11, while women’s rose to ￡19.92, highlighting a slower wage growth for women.

What’s Driving the Gap?

Experts point to structural issues, including:

• Women being more likely to work part-time or in lower-paid public sector roles.
• Barriers preventing women from advancing into senior leadership positions.
• Persistent gender stereotypes influencing career progression.
• Lack of affordable childcare and limited flexible working opportunities.

The Need for Change

HR experts argue that gender pay gap reporting alone is insufficient. Lisa Murphy, CEO of Limelite HR, describes it as a “largely toothless” compliance exercise without real consequences for inaction.

The UK government has pledged to address the issue through its upcoming Employment Rights Bill, which will require large employers to produce action plans on closing the gap, backed by a regulatory enforcement unit. However, experts warn that meaningful progress requires not just corporate action but broader societal changes, such as tackling gendered job segregation and improving childcare access.

The Call to Action

Employers must take proactive steps, such as:

• Expanding flexible work policies.
• Reviewing recruitment and promotion criteria to eliminate bias.
• Conducting objective job evaluations to prevent pay disparities.

While corporate efforts are critical, broader societal shifts are necessary to close the gender pay gap once and for all. Until then, the journey to equal pay remains a slow one—projected to take another four decades at the current rate of progress.

UK Skills Shortage Eases for First Time in a Decade, but Challenges Remain Staffing Industry Analysts

The UK’s persistent skills shortage has shown its first signs of easing in a decade, according to ManpowerGroup’s 2025 Talent Shortage Survey. The report reveals that 76% of UK employers are struggling to fill positions—down from 80% last year—indicating that the nation may have passed the peak of its talent gap.

A Shift in the Talent Landscape

The reduction in talent shortages comes as businesses face rising inflation, increased National Insurance contributions, and broader economic pressures. While this decline is a positive development, Michael Stull, UK Managing Director of ManpowerGroup, warns against complacency.

“The significant drop in the UK Talent Shortage could mean we’re over the peak, which has intensified over the past decade,” Stull stated. “However, while employers have worked hard to upskill, reskill, and integrate new talent pools, other indicators suggest a hiring recession.”

Employer Strategies to Tackle the Skills Gap

To navigate ongoing challenges, UK businesses are adopting various approaches:

• Upskilling and reskilling: 28% of employers are investing in internal workforce development to drive internal mobility and reduce recruitment costs.
• Targeting new talent pools: 23% of employers are diversifying their hiring sources.
• Wage increases: 21% of organisations are raising salaries to attract talent.
• Temporary recruitment: 14% are expanding the use of contract or temporary workers.

Evolving Demand for Skills

The survey highlights significant shifts in the types of skills UK businesses require:

• IT and data skills are now the most in-demand (up from 8th place in 2014 to 1st in 2025).
• Customer-facing and office support roles have grown in importance due to increased demand for in-person services.
• Engineering skills remain a priority despite other shifts in workforce demand.
• Sales and marketing skills have seen a resurgence, while administrative and office support roles have declined.
• ESG and sustainability expertise—not tracked a decade ago—is expected to gain prominence over the next ten years.

Stull noted that the drop in demand for technical, manufacturing, and production skills reflects ongoing offshoring trends and high-profile factory closures.

A Call for Continued Action

While the easing of the skills shortage is a positive sign, Stull cautions that economic uncertainty remains a key challenge. “Fewer jobs are available, which is slowing skills demand. Employers and the government must remain focused on improving UK productivity to avoid a prolonged hiring recession and the risk of broader economic downturns.”

He emphasised that businesses must continue investing in workforce development, preparing for legislative changes, and adapting recruitment strategies without compromising long-term goals.

“Any closing of the skills gap should be seen as a green shoot for productivity, but we must not rest where we are,” Stull concluded.

Source: Staffing Industry Analysts (SIA)

Insights

Global Labour Markets Under Pressure: What’s Happening?

Labour markets around the world are feeling the strain due to a mix of economic and political challenges, according to the International Labour Organization’s (ILO) latest report, World Employment and Social Outlook: Trends 2025.

The Key Issues:

• Slowing Economic Growth: The global economy grew by 3.2% in 2024, down from previous years, and this slowdown is making it harder for job markets to recover.
• Inflation & Wages: While inflation has eased, prices remain high, meaning that wages don’t stretch as far. Only some wealthier countries have seen real wage increases.
• Youth Unemployment: The unemployment rate stayed steady at 5%, but youth unemployment remains high at 12.6%.
• Working Poverty: Many people, especially in lower-income countries, are still in low-paid or informal work, struggling to earn a stable living.
• Gender Inequality: Fewer women participate in the workforce compared to men, limiting overall economic growth.
• The NEET Problem: Many young people, especially men, are not in education, employment, or training (NEET). In low-income countries, this number has risen sharply, leaving many without prospects for a secure future.

What is NEET?

NEET stands for ‘Not in Education, Employment, or Training’. It refers to young people who are not studying, working, or learning new skills through apprenticeships or training programmes. High NEET rates can indicate a struggling job market and a lack of opportunities for young workers.

The Global Jobs Gap

In 2024, around 402 million people worldwide wanted work but couldn’t find jobs. This includes:

• 186 million unemployed people actively looking for jobs.
• 137 million people who were temporarily unavailable for work.
• 79 million ‘discouraged workers’ who have stopped looking for jobs altogether.

Where Are the Opportunities?

Despite these challenges, the ILO highlights potential areas for job growth:

• Green Energy: Jobs in renewable energy have grown to 16.2 million worldwide, driven by investment in solar and hydrogen power.
• Digital Technologies: More companies are investing in technology-based jobs, which could create new employment opportunities.

What Needs to Change?

The ILO suggests three main solutions to improve global job markets:

1. Invest in Skills & Education: Training people in new skills will boost productivity and job creation.
2. Expand Social Protections: Governments need to improve access to social security and fair working conditions.
3. Use Private Funding Wisely: Countries can tap into remittances (money sent home by workers abroad) and diaspora funds (financial contributions from overseas communities) to boost local economies.

While the global labour market is facing big challenges, there are also opportunities for positive change. Governments, businesses, and workers need to focus on long-term solutions to build a stronger, fairer job market for the future.

Source: Staffing Industry Analysts (SIA) Danny Romero

Top Tips - Choosing a Recruitment CRM/ATS

For the next few weeks, I'll be sharing my tips into some of the most burning questions I hear from Recruitment Leaders and In-House Talent Teams. First up: choosing a CRM or ATS System. Picking the right system can feel like navigating a jungle swamp of software options. But fear not, I've got some insider tips to help you find the perfect partner for your team.

Picking a CRM/ ATS system can be a daunting and sometimes overwhelming experience. But fear not, I've learned a few tricks and tips that can make the process smoother (and less swampy!).

1. The "Process Audit" - Before you even look at software, deep dive into your own processes. Map out every customer touchpoint, every sales workflow. You might discover hidden inefficiencies you never knew existed.
2. The "Demo Blitz" - Forget the slow drip of demos. Schedule a concentrated "Demo Blitz" – say, two weeks of back-to-back sessions. This intense focus helps you compare features while your memory is still fresh. (Plus, it gets over with quicker!)
3. The "CRM Sleuth" - Don't just read reviews. Become a CRM/ ATS sleuth! Connect with real users – not just the happy ones on testimonials. Ask about their biggest wins and biggest pains. This raw, unfiltered feedback is gold.
4. The "Change Whisperer" - Be honest: CRM & ATS adoption requires change. Prepare your team for this. Frame it as an opportunity for improvement, not a threat. Invest in training and ongoing support to make the transition smoother.
5. The "Long Game" - It doesn't matter what system you are implementing, implementation isn't a sprint, it's a marathon. Don't expect perfection overnight. Focus on continuous improvement, gather regular feedback, and adapt your approach as needed.

Bonus Tip: Don't just "choose" a CRM/ ATS. Partner with one. Find a provider who truly understands your business goals and is willing to grow with you.

Next Edition

Good news for us contractors out there, I look at the UK's Contract Hiring Surges and Kelly Morton Fractional CEO, CCO, NED, SIA Top 100 staffing influencers & Global Top 150 Women in Power is my expert guest talking about all things fractional!

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