The Workforce Shift: How manufacturers can adapt to new people challenges

The HR Bulletin Q4 report shows that workforce pressures in manufacturing are not easing, they are changing.

Recruitment activity is slowing further, not because roles have disappeared, but because rising employment costs and new legal obligations are forcing tougher decisions. Skills shortages remain stubborn, even as the wider labour market loosens. Pay settlements are holding steady, but fairness and consistency matter more than ever. And with the Employment Rights Act now passed, employers are moving from awareness to preparation.

The Workforce Shift brings together insight from Make UK’s HR and Employment experts to help manufacturers respond to this new phase. Each article connects the latest data to practical action, focusing on what employers can control when margins are tight and uncertainty is high.

Recruitment slowdown

Recruitment is becoming more cautious as employer NICs rise, wage costs increase, compliance demands grow, and the National Minimum Wage is set to rise by at least 4.1%, putting pressure on wider pay structures. We explore how manufacturers can use this period to strengthen workforce planning, improve productivity, and make better use of existing skills.

Pay stability

Pay awards remain broadly stable, but pressure elsewhere is reshaping how pay decisions are viewed. Our article focuses on fairness, structure, and communication, and how employers can maintain trust when there is little room for headline increases.

Policy outlook

The Employment Rights Act is now law, with new trade union access rights and employer duties due to take effect from 2026. This article focuses on what employers need to do now to prepare their people processes, train managers, and reduce disruption as the changes come into force.

Persistent skills shortages

Despite a wider pool of jobseekers, manufacturers are still struggling to find people with the right qualifications and experience. We share how to build capability from within through training, management confidence, and retention, rather than relying on a tightening hiring market.

Workforce sustainability and retention

With hiring more constrained, keeping people well, engaged, and productive matters more than ever. This piece looks at retention, wellbeing, and long-term workforce planning, including how to make better use of experience across the workforce.

Regional and sector insights

Workforce challenges vary widely by region, sector, and business size. This article explores where pressures are most acute, why local context matters, and how tailored workforce planning leads to better outcomes than generic fixes.