The UK labour market continued to evolve throughout the third quarter of 2023, with employers navigating economic uncertainty, persistent skills shortages and changing candidate expectations. While recruitment activity slowed compared with the post-pandemic hiring boom, demand for skilled professionals remained resilient.
One of the clearest themes emerging from the latest Hiring Trends Index Q3 2023 is the growing importance of sustainability. Businesses are not only increasing investment in green jobs but are also recognising that strong environmental, social and governance (ESG) credentials have become a significant factor in attracting and retaining talent.
Here's what the latest research reveals.
The UK Labour Market in Q3 2023
The employment market showed signs of cooling during 2023 as organisations responded to inflation, higher borrowing costs and ongoing economic uncertainty.
Although recruitment remained active, vacancies fell below one million for the first time in two years, signalling a gradual easing of the exceptionally tight labour market experienced after the pandemic.
Other key developments included:
- Unemployment rising to 4.3%
- Employment growth slowing towards the end of the quarter
- Vacancies declining while remaining above pre-pandemic levels
- Employers becoming more selective in their hiring decisions
While the market became less competitive than in previous years, skilled professionals remained in strong demand across many sectors.
Inflation Begins to Ease
After a prolonged period of interest rate increases by the Bank of England, inflation began to moderate during Q3.
Importantly, wage growth finally caught up with inflation, providing some relief for employees following several years of declining real incomes.
Despite economic pressures, the Hiring Trends Index found that relatively few businesses were planning widespread redundancies, suggesting continued confidence in the long-term labour market.
Recruitment Activity Remains Strong
Although hiring volumes have softened, employers continue to recruit.
According to the report:
- 80% of businesses recruited during Q3 2023, matching the previous quarter.
- 36% increased their recruitment activity, compared with Q2.
- The average time to hire increased slightly from 5.8 weeks to 6.1 weeks, reflecting continued competition for skilled candidates.
This suggests that while organisations may be recruiting fewer people overall, they are still finding it challenging to secure the right talent.
Hiring Outlook for Q4 2023
Looking ahead, employer confidence remained relatively positive despite wider economic uncertainty.
Nearly six in ten businesses (59%) believed they would be able to recruit the people they needed during the following quarter.
Sectors expected to remain particularly active included:
- Transport and Distribution
- Real Estate
- Healthcare
- Finance and Accounting
- Information Technology
- Telecommunications
These industries continued to experience strong demand for specialist skills despite the slowing economy.
Green Jobs Continue Their Rapid Growth
Perhaps the most significant trend identified in the report is the continued expansion of green employment.
Demand for environmentally focused roles has increased dramatically over recent years, reflecting both government policy and growing corporate sustainability commitments.
The report highlights:
- A 677% increase in demand for green roles between 2019 and 2023.
- 23% of businesses actively increasing the number of green jobs within their organisations.
As businesses pursue net zero targets and strengthen ESG reporting, sustainability-related skills are becoming increasingly valuable across multiple sectors.
Importantly, many green jobs are no longer confined to environmental organisations. Sustainability responsibilities are now appearing in operations, procurement, facilities management, construction, engineering, finance and corporate strategy.
The Green Skills Gap
While demand for sustainability professionals continues to grow, investment in developing those skills has not always kept pace.
The research found that:
- Only 17% of businesses currently provide dedicated green skills training.
- 18% are actively helping employees transition into green roles.
This suggests there remains a significant opportunity for organisations to upskill their existing workforce rather than relying solely on external recruitment.
Industries placing particular emphasis on green skills include:
- Manufacturing
- Construction
- Finance
- IT and Telecommunications
- Education
- Legal Services
- Transport and Distribution
For employers, investing in sustainability training may become an increasingly important competitive advantage.
Sustainability Is Becoming Standard Business Practice
Environmental responsibility is no longer viewed as an optional extra.
The report found that:
- 58% of businesses have already implemented—or are actively implementing—a sustainability framework.
- Among larger organisations, this rises to 85%.
This reflects the growing importance of ESG reporting, investor expectations, customer preferences and regulatory requirements.
Facilities Management professionals are playing an increasingly important role in helping organisations achieve these objectives through:
- Energy management
- Carbon reduction
- Sustainable procurement
- Waste management
- Workplace wellbeing
- Environmental compliance
Employees Expect Businesses to Take Action
Perhaps the strongest message from the report comes from employees themselves.
Environmental responsibility has become a key consideration when choosing an employer.
The research found:
- 82% of employees want their employer to take action on climate change.
- 90% believe employers have a responsibility to contribute positively to environmental issues.
These expectations are particularly strong among Millennials and Generation Z, who increasingly view sustainability as an important factor when evaluating career opportunities.
For employers competing for skilled professionals, demonstrating genuine environmental commitment can therefore strengthen employer branding and improve recruitment outcomes.
Sustainability Improves Employee Engagement
The benefits of sustainability extend beyond recruitment.
The report suggests that employees are more engaged when they work for organisations that demonstrate a genuine commitment to environmental responsibility.
Around four in five candidates said they would experience greater job satisfaction working for a sustainable employer.
This highlights the growing connection between ESG performance and employee engagement, retention and organisational culture.
The Risk of Greenwashing
Candidates are becoming increasingly sophisticated in assessing employer sustainability claims.
The report found:
- 52% of candidates would avoid applying to organisations they believed were guilty of greenwashing.
- Meanwhile, 72% of employers felt confident communicating their sustainability initiatives without attracting accusations of greenwashing.
This reinforces the importance of authenticity.
Businesses should ensure environmental claims are supported by measurable actions rather than marketing alone.
Facilities teams often provide much of the operational evidence behind these claims, including energy savings, carbon reduction, waste management and environmental performance data.
What This Means for Facilities Management
Facilities Management sits at the centre of many sustainability initiatives.
As organisations invest more heavily in ESG strategies, Facilities Managers are increasingly responsible for delivering practical improvements that support wider corporate objectives.
This includes:
- Improving energy efficiency
- Reducing carbon emissions
- Managing sustainable buildings
- Supporting employee wellbeing
- Delivering environmentally responsible procurement
- Optimising workplace utilisation
- Reducing waste
The continued growth of green jobs also creates new career opportunities for FM professionals with sustainability expertise.
Knowledge of environmental legislation, carbon management, renewable energy and ESG reporting is becoming increasingly valuable across the profession.
Final Thoughts
The Hiring Trends Index Q3 2023 paints the picture of a labour market that is becoming more balanced following several years of exceptional demand.
While recruitment has slowed, organisations remain committed to hiring skilled professionals, particularly in sectors facing ongoing talent shortages.
Perhaps the biggest long-term trend, however, is the growing importance of sustainability.
The rapid rise of green jobs, increasing employee expectations and expanding ESG commitments demonstrate that environmental responsibility is no longer a niche concern—it is becoming central to business strategy.
For employers, investing in sustainability is increasingly helping attract and retain talent.
For Facilities Management professionals, it presents an opportunity to play an even more strategic role in shaping resilient, efficient and environmentally responsible workplaces.
Talk to Maxwell Stephens
If you are hiring in Facilities Management, talk to our team about what the market currently expects. If you are an FM professional weighing up your next move, the Facilities Management jobs we are handling span the public, private and not-for-profit sectors.
