Current HR Recruitment Trends in the UK Consumer Sector
The UK consumer sector is navigating a complex landscape marked by high inflation and a shift towards essential spending. Despite these challenges, certain areas are showing resilience and growth, influencing HR recruitment trends significantly.
Consumer Spending
In 2023, consumer spending in the UK declined in real terms due to high inflation. However, forecasts for 2024 are more optimistic, with total UK expenditure expected to reach £1.76 trillion. This cautious optimism is reflected in recruitment, with companies balancing between cost management and the need to attract talent to drive growth.
Retail Sector
The retail market in the UK is experiencing a dichotomy. E-commerce continues to expand, while brick-and-mortar stores face significant hurdles. The clothing and beauty sectors are performing well, indicating a demand for roles in these areas, whereas home goods are struggling, potentially leading to a more conservative hiring approach in that segment.
Consumer Goods
The consumer goods market is projected to add value worth US$76.7 billion in 2024. This growth is likely to spur demand for skilled professionals in production, supply chain management, and marketing, as companies strive to capitalize on market opportunities.
Non-Essential Goods and Services
Interestingly, net spending on non-essential goods and services rose in Q2 2024. Categories such as alcoholic beverages, tobacco, clothing, footwear, and holidays and hotels saw increased spending. This trend suggests a potential uptick in recruitment for roles related to these sectors, as companies expand to meet consumer demand.
Health and Beauty
The health and beauty sector is poised for continued growth, driven by new market entrants. This sector’s expansion is likely to create numerous job opportunities, particularly in product development, marketing, and retail positions.
Talent Shortages and Employment Outlook
A significant challenge in the consumer goods and services sector is the difficulty in finding skilled talent. According to the 2024 UK Talent Shortage Survey by ManpowerGroup, 72% of organisations report challenges in this area. The Net Employment Outlook (NEO) for the industry stands at +11%, although this is a decrease of 12% from the previous quarter and 14% from the same period last year.
The overall UK Net Employment Outlook is +20%, showing a slight decrease of 3% since the previous quarter and 9% year-over-year. Employers maintain a positive yet cautious approach to hiring, with optimism slightly reduced compared to Q2 2024. The Healthcare & Life Sciences, Information Technology, and Industrials & Materials sectors are leading this cautious optimism.
Impact of AI and Machine Learning
AI adoption is on the rise, with 51% of companies having integrated AI into their operations, an 18% increase year-over-year. This technological shift is expected to influence recruitment, with 56% of employers planning to increase headcount due to AI and machine learning over the next two years. However, nearly one in four employers believe AI will have no impact on their workforce.
—
The UK consumer sector is at a crossroads, balancing between the pressures of high inflation and the opportunities presented by growth in specific areas. HR recruitment trends reflect this dynamic environment, with a focus on attracting skilled talent to drive innovation and meet evolving consumer demands. As companies navigate these challenges, the role of HR in strategic planning and talent acquisition becomes increasingly critical.
