We’re fast approaching the mid-point of the year, a good time to reflect on the first half of 2022, recognise the challenges, identify any weak spots and plan for the remainder of the year.
I’d like to be informing you of change, of growth in the market, that the challenges we as recruiters and you as business leaders have faced in the first part of the year have dissipated.
But I can’t. We’re seeing very slow movement in the growth of permanent staff appointments due to the lack of available candidates and in March, vacancies hit a six-month high.
The REC Report on Jobs provides a useful summary:
Upturn in hiring activity slows again amid candidate shortages
Here are some key highlights:
- The availability of candidates to fill roles continued to fall sharply, with overall staff supply dropping at the quickest rate for four months.
- The imbalance of labour supply and demand drove further substantial increases in rates of starting pay, with salaries for new permanent joiners rising at the quickest rate on record in March.
- Recruiters frequently mentioned that candidate shortages continued to weigh on their ability to fill vacancies.
- A generally low unemployment rate, uncertainty related to the pandemic and Ukraine war, fewer EU workers and robust demand for staff had limited worker availability.
- Recruitment consultancies signalled a further increase in permanent starting salaries in March.
- Overall vacancies rose for the fourteenth month in September. Recruiters indicated stronger rises in both permanent and temporary staff demand in the latest survey period, with the former noting the steeper rate of growth.
- The softest, but still marked, expansion [of permanent placements] was seen in the South of England.
- IT & Computing recorded the steepest increase in demand for permanent staff of all ten monitored sectors in March. The softest, but still sharp, rise in permanent vacancies was seen in Retail.
Neil Carberry, Chief Executive of the REC, said:
“However, the overall number of placements being made is starting to stabilise. This is no surprise after a period of historically high growth, and in the face of more economic uncertainty. Even so, the jobs market is very tight. Businesses will need to broaden their searches and be creative in making their offer to candidates more attractive, in consultation with recruitment experts. But government can help by incentivising investment in skills and people during the inflation crisis.”
To read the full report, please click here.
Aspire Jobs comments
Companies who want to hire permanent staff need to find creative ways to attract new people alongside looking after their current employees. Recruitment consultants are experts in their field, and it is wise to seek their advice.
Employees and businesses are facing rises costs across the board. Whilst pay is growing (on average 4% over the past year), it is not keeping up with inflation. Companies will need to find a balance between protecting the business and protecting their staff as both face similar rises.
As ever, I am here to support you and if you need any help or advice with your recruitment practices, please do drop me a line.