The ManpowerGroup Employment Outlook Survey reveals a complex UK hiring environment for Q3, with cautious optimism among employers.
- Despite a slight decline, the UK’s Net Employment Outlook stands strong at +20%, exceeding the regional average.
- Youth unemployment remains high, yet nearly half of managers intend to hire under 25s in the upcoming quarter.
- Engagement challenges persist, with employers focusing on flexibility, wellbeing, and technology to attract young talent.
- The evolving labour market necessitates a new employer-employee pact to address intergenerational equity and future prosperity.
The latest ManpowerGroup Employment Outlook Survey presents a nuanced view of the UK hiring landscape for the third quarter. While there is a three-percentage point decline quarter-on-quarter, the Net Employment Outlook remains robust at +20%, placing the UK three percentage points above the EMEA regional outlook, yet below the global figure of +22%.
Given that youth unemployment rates in the UK are more than twice the national average and on the rise, it is promising that close to half of UK managers surveyed express intentions to hire individuals aged 25 and under during the July to September quarter. Notably, hiring intentions are particularly strong in regions such as Northern Ireland (53%), Scotland (50%), Wales (49%), the East Midlands (49%), Yorkshire and Humberside (48%), and London (47%).
However, 96% of UK employers surveyed report facing challenges in engaging employees with less than a decade of work experience. Difficulties arise in balancing work-life expectations and keeping employees motivated, alongside a widespread perception that Gen Z and younger Millennials lack necessary skills. To counter these challenges, employers plan to focus on three core strategies for the third quarter: offering flexible work hours (71%), emphasising overall wellbeing (70%), and enhancing technology tools (69%).
Michael Stull, Managing Director of ManpowerGroup UK, challenges the stereotype that Gen Z lacks a strong work ethic, highlighting their eagerness to learn and utilise new technologies, although on their terms. He stresses that the substantial availability of young people ready to enter the workforce presents a significant opportunity.
The survey also indicates that Gen Z’s affinity for the latest technology is noteworthy. With a significant proportion of respondents identifying as ‘early adopters’ (20%) or ‘current adopters’ (31%) of AI technologies like ChatGPT, Gemini, or DALL.E, the impact of AI on the labour market is already significant. As technology continues to evolve, the likelihood that Gen Z will be the last generation to work full-time, as currently defined, is increasing.
Due to the intergenerational equity considerations related to opportunities, sustainability, and the future prosperity of all age groups in the labour market, establishing a new ‘pact’ between Gen Z and employers is crucial. This approach aims to provide appropriate training and development opportunities to address skill gaps and ensure future prosperity for both the UK labour market and Gen Z specifically. Employers that can offer flexibility, development, and a sense of purpose may unlock a workforce eager to adapt to the rapidly evolving technological, green, and employment landscape.
Michael Stull notes that enabling lifelong learning and development requires a coordinated effort among businesses, educational institutions, and government bodies. Otherwise, many employees may be left behind as technology advances. Given that 80% of employers report difficulties finding skilled talent—up from 14% a decade ago—addressing this issue is critical for hiring and growth, especially as Gen Z is projected to comprise around 60% of the global workforce by 2030.
It is imperative for employers to adapt to Gen Z’s expectations and technological advancements to ensure a thriving future workforce.
