UK Report on Jobs - April 2022

22 May 2022

The main findings for April 2022 from the latest UK Report on Jobs, sponsored by KPMG and the REC (Recruitment & Employment Confederation), are as follows (the full report is available on request):

Permanent placement growth slips to 13-month low

Recruitment consultancies across the UK registered further sharp rises in both permanent placements and temp billings at the start of the second quarter amid reports of rising activity at clients and robust demand for staff. That said, the rates of growth eased to 13- and 12-month lows, respectively, as low candidate supply constrained the overall upturns in hiring activity.

Slower, but still rapid, reduction in candidate availability

The overall availability of candidates fell for the fourteenth month in a row in April. The rate of contraction was substantial and much quicker than the series average, despite softening to the weakest for three months. The supply of permanent labour continued to fall at a faster pace than that seen for temporary staff. Recruitment consultancies often mentioned that candidate numbers had fallen due to tight labour market conditions, fewer foreign workers and hesitancy to seek new roles due to the pandemic and geopolitical uncertainty.

Substantial increases in starting pay for both permanent and temporary workers

A combination of robust demand for staff and scarce supply drove further marked increases in starting pay during April. Notably, the rate of starting salary inflation weakened only slightly from March's record pace (which was the strongest since data collection began in October 1997). Temp wage growth also eased on the month, but remained historically sharp.

Total vacancies continue to rise sharply

Recruitment consultancies signalled a further steep increase in overall vacancies during April, despite the rate of growth easing slightly since March. Permanent staff demand continued to rise at a slightly quicker pace than that seen for temporary workers.

Hopefully this will provide you with an excellent insight into a myriad of critical recruitment topics including hiring activity, candidate availability and salaries. As you strive to keep your current employees happy and attract the best new talent to help your company grow you may find some of the content very useful.

If you want to discuss any of the above or any other recruitment-related issues then please don’t hesitate to contact us on 0121-585 6079.

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