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The Guardian - UK
The Guardian - UK
Business
Jedidajah Otte

‘It’s nightmarish’: why 1.5m Britons are still hunting for a job

A man in a suit sits opposite two people looking at a CV
UK employers are paying less and not prepared to invest in training, jobseekers say. Photograph: fizkes/Getty Images/iStockphoto

“This is the worst I’ve ever experienced in the job market, including the aftermath of the 2008 financial crisis, which also left me unemployed for a time, and the pandemic,” said David Hoghton-Carter, 46, a corporate strategy professional from Leeds.

Hoghton-Carter was among the 1.57 million people in the UK who were trying to find work between September and November 2024, and is still hunting after nearly two years.

While this group of people makes up Britain’s “unemployment” statistics, it is only a small part of the nearly 11 million working-age people who are considered “economically inactive” for various reasons, such as sickness, and do not receive an income.

“The job market is nightmarish. Competition is extreme, it’s slim pickings for good roles that suit my skillset, and employer expectations are through the roof,” he said.

Hoghton-Carter was among people from across the country who shared with the Guardian that they had never struggled as much in the past to secure a job. Their responses painted a picture of a job market where hundreds of candidates vied for every role, highly trained graduates struggled to find well-paid work and applicants were routinely rejected for roles they were qualified for and those they were overqualified for.

Meanwhile, research released on Monday showed vacancies were at their weakest level in January since August 2020, during the pandemic. Employer demand for permanent staff has contracted for the last 17 months, the research by KPMG and the Recruitment and Employment Confederation said.

Echoing the views of many other respondents, Hoghton-Carter felt UK employers were expecting more for less pay and were not prepared to invest in training.

“Salaries rarely meet current living costs,” he said. “It’s a race to the bottom by organisations and businesses either desperate to save money or prioritising their profit margins.”

Many of those looking for work noted a sharp downturn in advertised jobs and responses to applications since last summer, particularly for roles in design, entertainment, marketing, HR and IT.

Several blamed the dramatic drop in opportunities on the economic uncertainty, as well as increased costs for employers since Rachel Reeves’s budget last October. They also said AI had reduced the value of various jobs that had previously required professional expertise.

Owen Winn, a graphic designer from Slough, Berkshire, used to work in senior in-house design positions for companies such as O2. He said his previous roles appeared to have been replaced by AI in many companies, meaning vacancies have dwindled dramatically.

“It has been very difficult to find stable employment as a creative,” he said. “I have applied for hundreds of jobs.

“I have a body of work that spans 20 years for some of the most well-known brands in the world and yet it’s still not enough. It feels like being on the scrap heap at 44.”

In his search for permanent positions matching his seniority level, Winn has primarily come across vaguely defined piecemeal work opportunities on a freelance basis and in much more junior positions.

One recent freelance job offer, he said, came from a company with a website where all the graphic design had been AI-generated. “I fear that in this rush to embrace this kind of technology, we are going to overlook experienced creative talent,” he added.

Despite hopes that gaining a degree would lead to well-paid work, many graduates said they had been forced to take low-paying or part-time positions.

Lufty, 29, who lives in Manchester, was among many highly skilled people who got in touch who were underemployed: working in low-pay jobs they are vastly overqualified for, and often only part-time. Despite gaining a first in biology and a master’s degree with distinction in medical microbiology from Russell Group universities, he has been working in pubs, making about £24,000 a year.

Four out of eight staff members at the pub, Lufty said, had master’s degrees.

“I’ve been applying for entry-level jobs in science and healthcare, especially for lab assistant positions with the NHS, since I was 23. I’m lucky if I get one interview a year.

“These are band 2 entry level positions, offering less money than I make at the pub. They only require GCSEs or A-levels to apply and I have two degrees. I tick absolutely every box on the job descriptions. You have to assume it is so competitive that they’re automatically filtering out many applications because of the sheer volume. Or is there some rubbish AI sifting through these applications that keeps spitting mine out?”

Lufty, who borrowed £60,000 to obtain his degrees, was among many who believed that opportunities in science, technology, engineering and mathematics (Stem) were drying up, contrary to government and employer messaging that more graduates with Stem degrees were needed in the economy.

Danielle, 36, from London, who used to work in senior positions in HR, was one of various experienced mid-career professionals who were, similarly to younger graduates, affected by underemployment.

The UK labour market, such respondents reported, was saturated with excellent candidates at a time when hiring budgets were lower, and the number of vacancies – which noticeably rebounded amid demand for workers after initial pandemic job cuts – had fallen sharply.

“The market has been absolutely abysmal,” Danielle, who has only managed to find part-time work, said. “A couple of years back, I was inundated with offers. This time, I’ve been actively looking for a new role for almost four months and there are barely any openings. For every job there are 500-1,600 applicants you need to compete with. There just aren’t enough roles to go around.”

Employees also reported that their hours had been cut as bosses attempted to reduce labour costs without cutting headcounts.

Violeta Munteanu, 27, a product assistant from the West Midlands, said: “My working hours were reduced due to current budget [constraints]. Many of my friends had their working hours cut to reduce [costs].”

Scores of respondents reported that they were even unable to find low-skilled jobs in areas such as hospitality and retail to tide them over.

“I haven’t had a job in four years,” said Richard from Hull. “I’ve applied for about 1,500 jobs. I’m qualified in various things. I’ve applied for everything from being a cleaner in a factory to things associated with my degree..”

“I’m worried about my future,” said a 25-year-old woman from Yorkshire, who was made redundant when a shop closed. “I should be able to support myself financially, but I’m stuck in a village and live with my parents, so I have to claim universal credit. It feels impossible to get a job.”

Having studied illustration at university during the pandemic, she said she was hoping to find a job that would allow her to work from home.

Several jobseekers pointed to a mismatch between expectations and the needs of workers and those of employers, saying they were only considering fully remote, hybrid or more flexible positions.

Such people said unaffordable living costs in areas close to workplaces, and problems in securing suitable and affordable childcare, were among the reasons why attending an office full-time was difficult.

With scores of people with university degrees and years of experience describing their struggles as “ridiculous”, “exhausting”, “humiliating” and “demoralising”, young people and school leavers without further qualifications reported feeling entirely chanceless.

“It’s miserable,” said 20-year-old Sam from Brighton, East Sussex. “No replies on any online job applications despite tailoring CV to the job requirements – for instance, for my Subway application, I put forward my previous McDonald’s work as qualifications instead of my A-levels.”

Marina, 26, from Wanstead, east London, said she had been finding it impossible to find any permanent employment for the past six months.

Although she noticed that offered wages for short-term jobs in hospitality or admin were increasing, often for ad hoc shifts, she felt it was still not enough to make ends meet.

“There’s pressure to upskill or gain additional qualifications and experience, but then there are no permanent jobs offered, only [temporary contracts]. I wonder whether what employers are looking for in people has changed … the economy certainly has.”

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