Workforce pressures in manufacturing are shifting as employers face rising costs and new legal obligations.
Recruitment activity continues to slow, not because demand has disappeared, but because higher employer National Insurance contributions, increases to the National Living Wage, and the impact of new employment legislation are forcing tougher decisions. While many manufacturers are still recruiting, overall activity and vacancy numbers are falling.
Skills shortages remain a major challenge. Despite signs of a wider labour market, employers continue to report difficulty finding candidates with the right technical skills, qualifications, and experience.
The Q4 HR Bulletin gives you the data by company size, sector, and region to help you understand how these pressures are playing out across manufacturing.
We reveal:
- The latest pay settlement data, showing continued stability across most of the sector
- Recruitment activity, success rates, and where hiring is becoming more constrained
- The biggest barriers to recruitment and how they vary by region and sector
This quarter, we focus on the Employment Rights Act, now passed into law, and what upcoming reforms mean for employers. In particular, we examine concerns around new trade union access rights and employer duties, and how businesses can prepare ahead of implementation in 2026.
Find out how manufacturers are responding to cost pressure, workforce constraint, and policy change.