• 74% of employers say lack of quality candidates is an issue for their organisation, with hiring becoming harder for more than half 
• Yet at the same time, almost 2 in 3 jobseekers are struggling to find quality roles, with lack of pay transparency a key blocker
• Skills-first hiring gains traction among forward-thinking employers, while importance of learning and development becomes increasingly apparent 

New research from global hiring platform, Indeed, reveals a striking disconnect in the UK job market: while almost three quarters (74%) of employers say a lack of quality candidates is an issue for their organisation, nearly two thirds (64%) of jobseekers report difficulty finding quality roles to apply for.

This paradoxical situation means there are roles waiting to be filled, yet jobseekers are struggling more than ever to secure employment. The research - which surveyed over 2,000 UK jobseekers and employers - reveals changing attitudes to recruitment and skills as hiring challenges persist.

For jobseekers, lack of pay transparency (33%) represents their biggest challenge, followed by unrealistic role requirements (28%) and too much emphasis on formal education (18%). Meanwhile, 45% of employers are struggling to find applicants with required skills with more than half of (56%) employers saying hiring has become more difficult over the past three years.

Skills-first hiring shows promising results but remains underutilised

To combat this issue and improve the quality of applicants, 38% of employers say they are refining job descriptions, while 37% are adjusting salary and benefits.

Skills-first hiring, where employers evaluate candidates based on the specific skills required for the job before considering other factors, is also emerging as a valuable approach to hiring. While only 30% of UK employers currently have a defined skills-first hiring strategy in place, those who have adopted this approach report significant benefits. 

Over a third (35%) say skills-first hiring has improved innovation due to a diversity of skillsets, while 33% report attracting more quality candidates. Among those that do not currently have a skills-first hiring strategy, a quarter (26%) are planning to do so.

However, there remains a knowledge gap, with 73% of jobseekers unfamiliar with the concept of skills-first hiring. This represents a missed opportunity, as 34% of jobseekers believe that better highlighting their skills would save them time interviewing for roles that don't fit. Currently, jobseekers are most likely (59%) to rely on their on-the-job experience listed in their CVs to showcase their value, while 38% rely on skills listed on their CV.

Learning and development emerges as the great compromise

Jobseekers (65%) and employers (58%) agree that a key quantifier of a quality hire is the ability to add new capabilities and perspectives to the team. While 59% of employers also say that responding well to upskilling and training makes a quality hire, reflecting a growing shift towards investing in people to gain the skills they require post their employment.

In line with this shift, almost three-quarters (73%) of UK jobseekers say L&D is important when considering a role, with 56% willing to accept a less competitive salary in exchange for opportunities to develop skills and advance their career within an organisation. In response, over a third (37%) of UK employers have updated L&D programmes to help new hires acquire skills, with a further fifth (23%) planning to change their L&D strategy.

Despite its importance, the interview process is the most common stage (47%) where jobseekers learn about L&D opportunities, meaning employers are potentially missing earlier chances to attract quality candidates. 

Danny Stacy, Head of Talent Intelligence at Indeed, says: "The UK job market is facing significant challenges from both sides of the hiring equation. We're seeing a clear disconnect – employers can't find quality candidates which means there are roles to be filled, but at the same time jobseekers think it's harder than ever to find work. This paradox is creating unnecessary friction in an already challenging landscape.

"Our findings highlight a clear need for better communication between employers and jobseekers," he concludes. "By improving pay transparency, adopting skills-first hiring practices, and offering strong learning and development opportunities, employers can attract better talent in this challenging market. At the same time, jobseekers who can effectively demonstrate their adaptability and relevant skills, alongside willingness to learn, will find themselves at an advantage when it comes to securing their next role."