Over 25 million people in the UK have LinkedIn profiles. We anonymise and aggregate the information from these profiles to create unique insights into workforce trends.

The LinkedIn Workforce Report is a monthly report looking at hiring and professional migration trends in the UK, and this month’s report looks at the latest data from August 2018. This is our eleventh Workforce Report for the UK, and it takes a comparative look at both data from August 2018 and data from the previous 12 months to benchmark our findings and identify trends.

We time the workforce report in order to support the Office for National Statistics (ONS) labour reporting cycle, and the report we issue ahead of the ONS’s Labour Market Review covers the same period, up to the end of August 2018.

LinkedIn’s vision is to create economic opportunity for every worker in the global workforce. We hope that the Workforce Report will be useful to our members, allowing you to better navigate your career, and to businesses and policy makers, who will be able use our insights to better inform their decisions on talent, migration, and employment.

Key Insights

Our key findings on hiring activity in August:

• UK hiring fell in August. The seasonally adjusted (S.A.) Month on Month (MoM) National Hiring Rate was down 4.1% on July. This fall over the summer was expected, but nonetheless halted an upward trend since May and reversed July’s significant growth of 9.8%. August is traditionally a quieter month than July or September for hiring, as many workers are on leave or appointments are delayed until the autumn.

• Hiring growth is up on 2017. Year on Year (YoY) hiring was up 12% nationally in August 2018 compared to the same month last year. Hiring is stronger than it was this time last year, consistent with mostly positive YoY increases since February. Hiring compared to the same month last year, rose in all except one of the UK’s 12 nations and regions and in all labour market sectors that returned significant data. Of the regions that returned significant data in August, YoY hiring was strongest in Wales, and only London registered a decline, albeit of a modest 1%.

• Talent continues to move abroad. In August, nine out of the 12 British nations and regions reported net movement of talent to other countries, continuing the pattern seen in  July. However, in six regions, the net loss overseas has slowed since our last report. Migration into the UK has been falling steadily since the referendum on the UK’s membership of the European Union, and the August figures continue a trend that has been evident since the first quarter of this year when the country became a net exporter of talent.

• London is still losing workers overseas. The capital was a net loser of international talent in August, as it has been for six months. However, for the first time, this month the majority of new arrivals in London came from within the UK. There has been a consistent decline since the start of the year in the proportion of migrants arriving in London from other countries compared to those coming from within Britain itself.

• Most UK regions are losing international talent. The largest net international outflows in August were in the North East, Yorkshire and the Humber and the North West, and the regions that attracted talent from abroad were the East of England and the East and West Midlands. The South East overtook the North East to see the largest net movement of domestic and international workers out of the region of any part of the country.

• Hiring declined in every region in August. Hiring fell MoM in all of the UK’s regions that returned significant data. In London the decline was a modest 1%, with the largest falls MoM recorded in the South West (down 9%), East of England (down 8%), the North East and Scotland (both down 6%). London was again the only region to register a decline in hiring YoY compared with August 2017 (down 1%), the second month in succession that hiring has fallen in the capital in annual terms.

• Entertainment was the top hiring sector. MoM hiring rates were down in 15 of the 20 labour market sectors that returned significant data in August. Only four sectors registered positive growth: Entertainment (5%), IT Hardware and Networking (4%), Design (3%), and the Legal sector (2%). The sectors that performed worst MoM were Real Estate (down 12%) and the Financial and Nonprofit sectors (both down 9%). However, YoY figures indicate that hiring is up significantly across the board when compared with last year. The top performing sectors YoY were Energy and Mining, Public Administration and Legal (all on 18%), and even supposedly troubled sectors like Real Estate and Finance are doing well.

The Hiring Rate

The S.A. MoM National Hiring Rate for August was down 4.1% on the previous month, reversing considerable growth of 9.8% in July and halting two months of momentum achieved since May.

However, YoY hiring nationally was up 12% compared to August 2017 in an indication that more people took up new jobs than in the same month last year. The monthly pattern of hiring since May has been very similar to that of last year, but at higher rates overall.

Regional Hiring Rates

The S.A. MoM change in the Hiring Rate in August fell in all of the UK nations and regions that returned significant data, with an average fall across the country of more than 5%. The most significant declines were registered in the South West of England (down 9%) and in the East of England (down 8%).

London was again the only region to register a decline in YoY growth in hiring compared with August 2017, albeit by only 1%. It is the second month in succession that hiring has fallen in the capital in YoY terms. Wales and Yorkshire and the Humber registered the most significant YoY increases in hiring compared to August last year of 17% and 16%, respectively.

Notable regional activity this month includes:

London – The S.A. Hiring Rate in London fell MoM by 1% in August, reversing growth of 9% the previous month. July had been the first month this year, aside from a strong performance in April, in which the capital had achieved a healthy positive growth and the trend has generally been erratic since May. YoY hiring in London also fell versus August 2017 (down 1%). The top sectors for new hires were Finance, Software and IT Services, and Corporate Services.

South West – The fall in the S.A. MoM Hiring Rate in August in the South West was the largest of any region of the UK, at 9%. This again reverses the healthy growth in July of 11%, and  ends a relatively stable performance since last December. However, the Hiring Rate was up YoY by 8% versus August 2017. The most popular hiring sectors in the region were Corporate Services, Manufacturing, and Education.

The East of England – The East of England achieved the second highest decline in the S.A. MoM Hiring Rate of any region of the UK in August (down 8%), reversing considerable momentum achieved in July when its growth of 17% was the largest in the UK. The YoY Hiring Rate was up by 7% on August 2017. Corporate Services, Software and IT Services, and Finance attracted the largest proportions of new hires.

The North East – The S.A. MoM Hiring Rate fell by 6% in the North East in August, and after London it recorded the lowest YoY Hiring Rate versus August 2017 of any region, at 6% growth. The main sectors for hiring were Energy and Mining, Manufacturing and Corporate Services sectors.

Scotland – Hiring continues to be sluggish in Scotland, where the S.A. MoM rate was down 6% in August after growth of just 1% in July, the lowest of any part of the UK. Although YoY Hiring was 8% up on August 2017, this remains below the national average of 10%. Energy and Mining was the most popular hiring sector followed by Finance and Corporate Services.

South East – The S.A. MoM Hiring Rate in the South East was also down by 6% in August, reversing the robust growth of July (12%). YoY growth was a modest 7% compared to August 2017. The top sectors for new hires were Software and IT Services, Corporate Services, Education and Manufacturing.

Wales – In Wales the S.A. MoM Hiring Rate in August was down by 5% – the average fall across the UK. However, YoY the picture was better, with hiring growing by 17% compared to August 2017, the highest of any region in the country that returned significant data. Hiring was most healthy in Corporate Services, Manufacturing, and Education.

The East Midlands – The East Midlands registered a decline in the S.A. MoM Hiring Rate of 5% in August, matching the performance of three other regions, Wales, the West Midlands and Yorkshire and the Humber. YoY hiring rose 9% in the East Midlands versus August 2017. The busiest hiring sectors were Manufacturing, Corporate Services and Education.

The West Midlands – The Hiring Rate in the West Midlands fell by 5% MoM in August, although the YoY Hiring Rate increased by an above average 11% compared with the same month in 2017. Manufacturing, Corporate Services, and Software and IT Services were the sectors in which there were most new hires.

Yorkshire and the Humber – The S.A. MoM Hiring Rate also fell by 5% in Yorkshire and the Humber in August. The region had enjoyed a  healthy growth in July of 13%, the second highest rate in the country. However, in August it enjoyed continued YoY growth with a  Hiring Rate of 16% versus the same month last year, second only to Wales among the regions that returned significant data. Most new hires were in Manufacturing, Corporate Services, and Education.

The North West – Although the S.A. MoM Hiring Rate in the North West fell by 3% in August, this was at the lower end of the scale nationally and only London fell by less. YoY, the Hiring Rate grew 7% compared with August 2017, below the national average. The top hiring sectors were Corporate Services, Manufacturing, and Software and IT Services.

Sector Hiring Rates

A deep dive into the individual Hiring Rates for different sectors of the economy can give us a better understanding of the hiring changes that have been taking place. Of the 20 labour market sectors that returned significant data in August, 15 registered a decline in the S.A MoM Hiring Rate and only five grew or did not change. This was a turnaround from July, when all but one sector grew in MoM terms. Overall, the average MoM change across all the sectors in August was a negative 3.2%. YoY, however, every sector of the labour market that returned significant data grew, in comparison to August 2017.

Real Estate – The Real Estate sector is experiencing volatility, recording the largest decline in the S.A. MoM Hiring Rate of any sector in the UK in August of 12% after having clocked up healthy growth in July of 17%. Real Estate also achieved YoY growth of 11% versus August 2017.

IT Hardware and Networking – IT Hardware and Networking was one of the four sectors in which the S.A. MoM Hiring Rate grew in August, recording an increase in hiring of 4%, second only to the Entertainment sector and reversing negative growth in July (down 10%). Hardware and Networking achieved growth YoY of 8% versus August 2017.

Legal – While growth in the S.A MoM Hiring Rate in the Legal sector was a modest 2% in August, this performance was towards the top of the chart, and maintained the upward trend evident in July (up 12%). The YoY Hiring Rate was also cause for cheer, with growth of 18% when compared with August 2017, making the sector a top performer alongside Energy and Mining and Public Administration.

Finance – The Finance sector recorded an above average fall in the S.A. MoM Hiring Rate in August of 9% after having achieved 7% growth in July. However, the Hiring Rate YoY grew 10% compared to August 2017.

Entertainment – The Entertainment sector picked up in August, registering the highest growth in the S.A. MoM Hiring Rate of any sector (5%) and improving on July’s  poor performance when its growth was just 3%. However, growth in the YoY Hiring Rate of 3% versus August 2017 was the lowest of any labour market sector.

Corporate Services – The S.A. MoM Hiring Rate fell by 8% in the Corporate Services sector in August, halting an upward trend since May. YoY the Hiring Rate registered healthy growth of 14% versus August 2017.

Manufacturing – In Manufacturing, the S.A. MoM Hiring Rate also fell by 8% in August, placing this sector at the lower end of the chart, and reversing the 11% growth achieved inf July. There was a YoY growth of 10% versus August 2017, which is consistent with its performance the previous month.

Construction – In August the S.A. MoM Hiring Rate for the Construction sector fell by 7%, halting a recovery that had become apparent since May. The YoY Hiring Rate grew by 12% versus August 2017.

Consumer Goods – A decline of 6% in the S.A. MoM Hiring Rate in the Consumer Goods sector in August overturned the positive performance of July (up 7%). While the hiring rate YoY was up 8% versus August 2017, this was towards the bottom of the chart among the sectors.

Software and IT Services – The S.A. MoM Hiring Rate was down by 5% in Software and IT Services in August after this sector had registered growth in July of 10%. However, growth in the YoY Hiring Rate versus August 2017 of 14% was at the higher end of the chart.

Energy and Mining – The Energy and Mining sector is holding its own with a modest fall in the S.A. MoM Hiring Rate of 1% in August being the lowest decline among those sectors where hiring was down. Impressive YoY growth in the Hiring Rate of 18% versus August 2017 also put it at the top of the chart alongside the Legal and Public Administration sectors.

Public Administration – Public Administration registered a modest fall in the S.A. MoM Hiring Rate in August of just 1%, suggesting that it is maintaining the positive performance of July (up 14%). Further evidence of this can be found in YoY growth in the Hiring Rate of 18% versus August 2017, making it a top performer alongside the Legal and Energy and Mining Sectors.

Nonprofit – After strong growth in July with the S.A. MoM Hiring Rate up 11%, the Nonprofit sector stumbled in August with a decline of 9%, putting it at the lower end of the chart. Growth in the YoY Hiring Rate was 9% compared to the same month last year.

Media and Communications – Hiring in the Media and Communications sector has also been erratic, with the S.A. MoM Hiring Rate falling 3% in August after having registered 12% growth in July. YoY growth was more modest at 7% versus August last year.

Retail – In August the S.A. MoM Hiring Rate also fell by 3% in the Retail sector, ending a period of modest growth in this sector since May. YoY growth in the Hiring Rate versus August 2017 was 12%.

Healthcare – Hiring in the Healthcare sector has been erratic, and the S.A. MoM Hiring Rate was down in August by 3% after the sector had recorded the highest growth of any sector in July at 20%. However, YoY the picture was much better, with the Hiring Rate up by 16% compared with August 2017.

Transportation and Logistics – The August S.A. MoM Hiring Rate declined by 2% in Transportation and Logistics, which was better than the sectoral average. YoY the Hiring Rate was up 11% versus August 2017.

Design – The S.A. MoM Hiring Rate grew by 3% in the Design sector in August, maintaining the positive performance of July (up 10%). However, growth in the YoY Hiring Rate was towards the bottom of the chart at 6% versus August 2017.

Education – The S.A. MoM Hiring Rate was down by 1% in the Education sector in August alongside that of Public Administration. It achieved better growth YoY, with an increase in the Hiring Rate of 12% versus August 2017.

Recreation and Travel – In August the S.A. MoM Hiring Rate did not change in the Recreation and Travel sector. The YoY Hiring Rate grew 12% compared with the same month last year, continuing a generally upward trend of higher hiring YoY since 2017.

Migration

Migration into the UK has been falling steadily since the referendum on the UK’s membership of the European Union, and in Q1 2018 the country became a net exporter of talent. In August, the trend that has been evident since the first quarter continued, with nine out of the 12 British nations and regions reporting net movements of talent to other countries.

London is still the most attractive region for international arrivals by volume, and attracts almost double the amount of overseas talent than its nearest rival, Scotland. However, Scotland continues to lure a slightly higher proportion of new arrivals from other countries. London became a net exporter of talent to the EU27 in Q1 2018, and in August the capital continued to lose international talent, albeit at a slower rate than in previous months.

Outward migration from the UK’s regions

London, the South East and the East Midlands continue to be the regions from which members are most likely to leave and move to other UK regions or abroad, although the rate at which they are doing so slowed in August compared to July.

Of the three regions with the greatest number of overall departures, only London saw a majority of people who were leaving heading overseas in August. In most of the UK’s regions, the proportion of people departing who head abroad is declining.

Inward migration to the UK’s regions

In August, London, the South East and the East of England continued to be the three regions gaining the most members from other UK regions or other countries.

For the first time, in August the majority of new arrivals in London came from within the UK. There has been a consistent decline since the start of the year in the proportion of migrants arriving in London from other countries compared to those coming from within Britain, reflecting the city’s slowly declining attraction to international talent. Although Scotland is now the only region in which the majority of new arrivals remains international, the proportion of migrants arriving from abroad also slipped in August.

Net flows to UK regions

In August, London, the South West, the North West and Northern Ireland were net recipients of combined domestic and international migration. In August, the South East overtook the North East as the region experiencing the largest net movement of people moving out, in proportional terms, of any part of the UK. There has been a clear upward trend of members leaving the South East since early this year.

In terms of net domestic migration, London continues to attract more people from within the UK of any region, and its attraction has been growing since April. The South East and East Midlands are the regions with the most people leaving for other parts of the UK.

From the perspective of international migration, in August, just three of the 12 nations and regions were net gainers of international talent (the East Midlands, West Midlands and the East of England), a marginal improvement since July when there were only two (the East of England and the West Midlands) but still a significant drop from the nine recorded in January. London, the North West, the North East, Yorkshire and the Humber, the South West, the South East, Scotland, Wales and Northern Ireland all lost more workers to other countries than they gained.

Discuss the report on LinkedIn and Twitter at #UKWFR. Follow @LinkedInUK on Twitter to receive future reports, and follow our UK Country Manager Josh Graff on LinkedIn for additional insights.