The main findings for August 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):
Economic uncertainty weighs on recruitment plans
UK recruitment consultancies signalled further increases in both permanent staff appointments and temp billings during August. That said, the rate of permanent placement growth was little-changed from July's 17-month low, while temp billings expanded at the softest pace for a year-and-a-half. While strong demand for workers and efforts to fill vacancies supported the overall upturn in hiring, there were reports that greater economic uncertainty, rising costs and candidate shortages had dampened growth.
Overall vacancies expand at slowest rate for 18 months
August survey data pointed to a further slowdown in growth of vacancies. Though sharp by historical standards, the latest increase in demand for staff was the weakest seen for 18 months, with recruiters signalling softer rises in both permanent and temporary vacancies.
Softest increase in starting salaries since June 2021
Average starting salaries for permanent staff continued to rise rapidly in August, though the rate of inflation softened further from March's survey record. Notably the rate of salary growth was the softest seen for over a year. Temp wages meanwhile rose at a slightly sharper pace, albeit one that was the second-slowest since June 2021. Higher rates of pay were frequently linked to intense competition for candidates and the rising cost of living.
Candidate availability falls at slightly weaker rate
The overall supply of candidates continued to fall sharply in August, with permanent worker availability deteriorating at a quicker pace than that seen for short-term staff. A generally tight labour market, fewer foreign workers and a reluctance to seek out new roles due to uncertainty weighed on staff supply. That said, the decline in total candidate numbers was the softest seen for 16 months.
Vacancies hit all-time high as economic uncertainty continues
Economic uncertainty in the UK continues to heighten and employers’ confidence continues to drop. The UK economy remains turbulent as record vacancy numbers highlight the risk posed by labour shortages.
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.
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