The main findings for July 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):
Softer expansion in overall recruitment activity
Latest survey data pointed to slower increases in both permanent staff appointments and temp billings at the start of the third quarter. In each case, the rate of expansion softened to the weakest in 17 months, as a number of firms commented that greater uncertainty towards the outlook and rising costs had led some clients to be more cautious around hiring decisions. The murkier outlook also contributed to the fact that temp billings rose more strongly than permanent staff appointments.
Vacancy growth dips to 16-month low
Recruitment consultancies signalled a further sharp increase in demand for staff during July. However, the rate of vacancy growth eased for the third month in a row and was the slowest recorded since March 2021. Underlying data pointed to softer increases in demand for both permanent and temporary staff, with the former seeing the more marked slowdown.
Availability of candidates falls at softer, but still sharp rate
As has been the case since March 2021, the supply of workers across the UK fell during July. Though rapid and much quicker than the long-run average, the rate of reduction was the slowest seen in 15 months. Downturns in the availability of both permanent and temporary workers eased compared to June. Nonetheless, there were still widespread reports of skills shortages, fewer foreign workers and a greater hesitancy to seek out new roles due to increased economic uncertainty and concerns over job security.
Starting pay for permanent staff continues to rise sharply
Starting salaries for permanent workers continued to increase in July, thereby stretching the current period of inflation to 17 months. The rate of pay growth was rapid, albeit the softest seen since August 2021. Nearly half of recruiters (47%) noted higher starting salaries, compared to 2% that saw a fall, with firms often attributing higher pay to low candidate numbers, intense competition for staff and the rising cost of living. Steep increases in permanent starters' pay were seen across all four monitored English regions, led by London.
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 encompassing Sales, Marketing, IT, Finance, Technical, HR and others.