The recruitment industry relies on knowing and predicting where to expect industry recruitment growth in the coming years; which industries will flourish, which will reach a point of saturation.
The recruitment industry and employment situation change from year to year and can be affected by skills shortages or surplus, a shift in technology advancement, an aging population or a changing market. Various influences in our economy can impact areas differently; we know, for example, that the UK has experienced a skills shortage which affects skilled trades primarily. Here we take a look at why and where there is expected growth, in specific industry recruitment, in the near future; and highlight 7 industries that are potential ones to watch.
In this age of digital, you will find unsurprisingly, that the IT sector is set for significant growth. With higher levels of investment being applied to information technology now, than in previous years, there is a real drive for recruitment within the sector. With generation ‘Y’ having reached fruition, there are now more than ever, plenty of individuals with varied IT skills, this may be in programming, system analysis, software engineer, or many others, all looking for jobs in IT and digital, all readily available to recruiters and employers.
Consumer trends also contribute to the growth of this industry; the increased use of mobile for example, now more commonly used than desktops. In addition, it is noteworthy that roles within this profession have seen on average a 4% pay rise [ITProportal] and also a significant rise in hiring rates for specific job roles.
With digital going from strength to strength, as discussed above; and largely being led by consumer trends, the digital marketing and communications sector can also continue to enjoy employment growth.
This fast paced environment will expect and encourage individuals to upskill to succeed in their quest to fill certain job roles. WIth 17% of marketing professionals undertaking a job search, although there will be growth in recruitment, the industry may experience problems with staff retention [Hudson UK].
Fintech, bridging a gap between the financial sector and the information technology sector, is another area experiencing growth. We have seen a ‘fintech boom’, with an influx of consumer facing startups in this industry. Fintech products are widely used by firms for their in house management of pay systems and accounts. These products however are also now popular amongst individuals on a more personal basis. Increasingly, we like to be in charge of managing our own affairs, and to do so on a user friendly interface and often on the move. We can set up banking, transfer and manage stocks on the go.
This sector specifically has seen greater investment over the past few years, seeing a 201% rise in investment back in 2014 [Accenture] and with £24billion being pumped into this industry of startups, worldwide, [Forbes] this is an area for recruitment firms to get excited about.
After seeing years of slow movement toward growth in the financial sector, last year saw a rise in financial industry recruitment, and this may partially have been influenced by technological advancements utilised within the industry. Although the increased legislation following the banking crisis is slowing down actual recruitment processes, it has encouraged the need for compliance consultants in the industry, opening another door for recruitment. The financial services sector may also expect a pay rise, although perhaps not as much as IT; the sector will be looking at 2.2% plus. This is likely to be more prominent amongst higher positions, potentially seeing a larger increase [ITportal].
Engineering is a profession that underlays and supports so many areas of the UK economy. The gap between supply and demand for jobs in the sector still exists, however having seen over the past few years an increase in interest and uptake in engineering throughout higher and further education, the sector will soon benefit from the skills of these students in industry. There is, in addition, much effort being put into ensuring that more students take the choice of engineering in the future, to continue closing this gap [Engineering Uk]. The need for new and skilled engineers is something the industry always needs and with potential new talent emerging the industry could well see growth in the near future.
The Government, in their 2015 Autumn Statement at the end of last year, promised to spend £12bn on improving the infrastructure of the country. This was good news for recruitment in the construction sector. Construction is already experiencing demand and potential for industry growth, as the need for housing continues to be in high demand. The UK has unfortunately seen a number of floods, predominantly in the north of England over the past few years, leaving destruction and need for repair, rebuilding and therefore for workers. With an aging workforce, the need for recruitment here is both a definite need and potential for growth.
Last year saw record-high employment in the UK, following the lows of the recession. With unemployment at only 5.5%, [BBC] the industry as a whole is at its peak. This is, needless to say, beneficial for all areas of industry, however the recruitment industry has of course seen significant growth too. Social media is now, as we know, a much used and growing marketing tool, and is becoming a popular place to actually hire candidates. With most people using social media daily, this is definitely something to tap into and is expanding areas for fresh recruitment. The levels of recruitment startups are also on the rise, creating the need for more positions in the recruitment industry to be filled.
One last industry worth a mention is hospitality, which may potentially see growth in industry recruitment. Thanks to the surge of interest in travel to the UK, hospitality has increased by up to 5.1% last year [Office of National Statistics]. This is also one of the biggest areas of startups, seeing a 13% rise in the number of restaurant startups [LEP], so a definite one to watch.