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 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:
While the market became less competitive than in previous years, skilled professionals remained in strong demand across many sectors.
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.
Although hiring volumes have softened, employers continue to recruit.
According to the report:
This suggests that while organisations may be recruiting fewer people overall, they are still finding it challenging to secure the right talent.
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:
These industries continued to experience strong demand for specialist skills despite the slowing economy.
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:
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.
While demand for sustainability professionals continues to grow, investment in developing those skills has not always kept pace.
The research found that:
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:
For employers, investing in sustainability training may become an increasingly important competitive advantage.
Environmental responsibility is no longer viewed as an optional extra.
The report found that:
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:
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:
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.
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.
Candidates are becoming increasingly sophisticated in assessing employer sustainability claims.
The report found:
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.
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:
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.
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.
