How SMEs can hire to keep up with demand

Funding Circle’s guide to scaling your team strategically in a fast-moving market

From stretched teams to missed opportunities, hiring can make or break a business’s ability to scale. So how can SMEs build resilient, high-performing teams in a competitive labour market without overstretching budgets?

At Funding Circle, we support thousands of UK SMEs with fast, flexible finance. We’ve analysed the data to reveal which industries are the most competitive in 2025 and how SMEs should approach hiring by recruiting smartly, scaling sustainably, and staying ahead of demand.

UK job vacancies fall as competition for roles intensifies

According to the latest ONS data, job opportunities in the UK are becoming more competitive as vacancies fall, even though the overall number of jobs in the UK is still growing. UK vacancies dropped by 63,000 (7.9%) from the previous quarter, marking the 35th consecutive quarterly decline. As a result, there are now 2.2 unemployed people for every vacancy, up from 1.9 in the previous quarter. 

HR, retail, and hospitality roles see fierce competition in the UK job market

Before hiring, it pays to understand the wider labour market. Funding Circle has analysed national job data to reveal which roles are most in demand and which sectors are facing the stiffest competition. 

Oversaturated Job Markets: The Harshest Sectors for Applicants

HR, retail, and hospitality top the list as the most competitive job sectors in the UK right now, with more than 100 estimated applicants for each available role. These industries combine high interest with relatively few open roles, creating intense competition and low chances of success for applicants.

Despite having 4,961 live HR roles, there are over 118,800 annual job searches for positions in this sector, meaning an estimated 129 applicants per role. That results in a less than 1% chance of securing a role for each applicant, making HR the most oversubscribed job category in the market right now.

This isn’t the only sector that is finding high demand versus availability. Retail jobs, with 1,491 live vacancies and 177,600 annual searches, are seeing an estimated 119 applicants per role. Hospitality jobs, with only 470 roles available and 52,800 searches annually, are similarly competitive, with roughly 112 applicants per vacancy.

Job seekers in these sectors face a highly competitive job market, while employers may find themselves inundated with applications, many of which may be from overqualified or underqualified candidates, creating inefficiencies in the recruitment process. Oversaturation in these sectors is creating a bottleneck, both for candidates and hiring managers. Investing in applicant tracking tools or structured hiring assessments could streamline the process.

Job Search	Search Monthly Volume (UK)	Annual Search Volume (UK)	Jobs in sector on Reed	Applicants per role	% chance of securing a role
HR Jobs	9,900	118,800	924	129	1
Retail Jobs	14,800	177,600	1,491	119	1
Hospitality Jobs	4,400	52,800	470	112	1
Admin Jobs	9,900	118,800	2,427	49	2
Marketing Jobs	8,100	97,200	2,008	48	2
Customer Service Jobs	14,800	177,600	3,680	48	2
Construction Jobs	5,400	64,800	1,677	39	3
Healthcare Jobs	3,600	43,200	1,518	28	4
Engineering Jobs	5,400	64,800	3,177	20	5
Sales Jobs	5,400	64,800	3,267	20	5
Finance Jobs	5,400	64,800	3,573	18	6
IT Jobs	8,100	97,200	7,758	13	8
Education Jobs	3,600	43,200	3,549	12	8
Law Jobs	1,900	22,800	2,322	10	10
Design Jobs	1,900	22,800	3,361	7	15

Moderately competitive sectors: admin, marketing, and customer service

With around 48-49 applicants per role, admin, marketing, and customer service jobs remain highly competitive but offer slightly better odds for candidates (2% success rate).

These sectors tend to attract generalist skill sets and entry-level talent, which explains the volume, but they also see rapid turnover, giving SMEs more frequent hiring windows.

Talent shortages: where job seekers have the upper hand

On the other end of the spectrum, tech, legal, education, and design roles show much higher chances of securing a job, with fewer than 15 applicants per role on average:

• Design jobs: With only 7 applicants per role, candidates in this creative sector face far less competition.
  
• Law and education: Despite their niche nature, these sectors offer a 10-15% success rate, far above the average.
  
• IT roles: One of the least competitive fields, with an 8% success rate, likely due to high demand and a digital skills shortage.

If you’re hiring in these areas, expect candidates to be selective. Competitive salaries, flexible working conditions, and a strong culture are essential to secure top talent in these fields.

4 ways SMEs can hire to meet demand

1. Focus on roles That unlock growth

Prioritise roles that:

• Support sales and customer delivery
• Improve efficiency (e.g., operations, admin, finance)
• Help retain clients or upsell (e.g., account managers)

Use your hiring budget where you’ll see the clearest ROI.

2. Be flexible with roles

In a tough employment market, it’s crucial that businesses offer flexibility:

• Offer hybrid/remote work where possible
• Use freelancers for project-based needs
• Hire part-time or fractional roles to access senior talent without full-time cost

3. Differentiate with Your Offer

You might not outpay big firms, but you can outoffer them:

• Emphasise purpose and impact
• Offer autonomy and varied responsibilities
• Provide learning budgets and growth pathways

4. Speed up the hiring process

In-demand candidates won’t wait around. Streamline your process by:

• Using templates for job specs and interviews
• Setting clear timelines
• Leveraging job boards and applicant tracking tools (e.g., Workable or BreezyHR)

In a competitive hiring landscape where vacancies are falling and applicant numbers are rising, securing the right talent quickly can be the key to growth. For SMEs looking to scale, accessing a business loan from Funding Circle can provide the financial flexibility needed to cover recruitment costs. Whether that’s investing in job ads, offering signing bonuses, or working with specialist recruiters. With the right funding in place, businesses can move fast to attract top talent, strengthen their teams, and take advantage of growth opportunities without compromising cash flow.

While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.