UK Report on Jobs - May 2022

16 June 2022

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The main findings for May 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):

Sustained slowdown in growth of recruitment activity

May survey data pointed to a further robust increase in hiring activity across the UK, though there were signs of a further slowdown in overall growth. Notably, permanent staff appointments expanded at the softest rate since March 2021, while temp billings increased at the weakest pace in 15 months. Recruiters often mentioned that candidate shortages had weighed on placements.

Candidate availability continues to fall rapidly

A further marked deterioration in overall candidate supply was seen in May. This was despite the rate of reduction easing to the softest in four months. Underlying data indicated that permanent candidates continued to decline at a faster pace than that seen for temporary workers. Moreover, the latest reduction in shortterm staff supply was the least severe for just over a year. Panel members often mentioned that greater caution around the outlook, widespread skills shortages and fewer foreign workers had weighed on staff availability.

Overall vacancies expand sharply

Demand for staff continued to rise at a historically sharp pace in May. Broken down by job type, permanent vacancies continued to expand at a quicker rate than that seen for temp roles. Notably, demand for short-term staff increased at the softest pace for five months.

Starting salary inflation remains close to record-high

With the supply of workers falling further and demand for staff remaining robust, recruiters noted sustained upward pressure on rates of starting pay in May. Despite softening to a four-month low, permanent starters' salaries rose at a rapid pace that was among the quickest since the survey began in October 1997. Temp pay growth was also sharp, albeit the slowest seen for 11 months.

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.

Swindale Parks Recruitment is over 30 years old – we have lots of hiring experience to share.