2023 July Recruitment Outlook: Strong Hiring Activity

Wednesday, September 6, 2023

The recruitment landscape continues to improve this month with employers gaining confidence and sustained demand for skilled professionals. The latest Monetary Policy Report from the Bank of England reveals that the market is performing better than anticipated, and unemployment rates are projected to remain below 4% until the end of 2024. 

While there are broader economic considerations, signs of growth are emerging. In response to the most recently released REC Report on Jobs, Claire Warnes, Partner of Skills and Productivity at KPMG UK, shared her thoughts, saying, "Businesses ready to grow can feel optimistic about an increasing pool of available candidates, which has expanded at the sharpest rate in two-an-a-half years. For jobseekers, there was more demand for permanent workers in the healthcare, financial and accounting sectors. And while temporary growth slowed, there are still plenty of opportunities.” Let's delve deeper into the key findings of the latest reports:

Strong hiring activity pushes forwards
The prevailing economic uncertainties have influenced employer hiring decisions, resulting in a decline in the number of individuals placed in new permanent roles for the eighth consecutive month. However, the popularity of temporary positions continues to rise, experiencing growth for 34 consecutive months. During times of economic uncertainty, employers often opt for temporary workers while they carefully evaluate permanent hiring decisions. 

The best candidate supply we’ve seen in a long time
For a significant period, employers have grappled with a limited pool of candidates. However, the past three months have witnessed consistent growth in candidate supply, reaching its highest rate in almost two and a half years. Some employers, navigating the uncertainty by implementing redundancies, have inadvertently contributed to an increased pool of candidates available for those seeking expansion. However, it’s worth bearing in mind that the data suggests candidates are gaining confidence to explore new roles that offer better pay. Consequently, there is an expanding candidate supply for both permanent and temporary positions. 

Starting pay and wages continue to rise
To keep pace with inflation and the rising cost of living, salaries and wages have witnessed substantial increases in recent months. Although starting pay continues to rise, there has been a marginal softening, affecting both permanent and temporary positions. Nonetheless, there have been 27 consecutive months of solid growth in starting salaries for both permanent and temporary workers. 

More vacancies, more choice
Demand for staff continues to rise, although there have been three consecutive months of softening, varying across different sectors. According to the Office for National Statistics (ONS), there are presently 1,083,000 open vacancies, surpassing the pre-pandemic figure of 826,000 recorded in the three months leading up to February 2020. 

Balanced times ahead for employers and candidates
The latest data from the REC Report on Jobs illustrates the unwavering resilience and strength of the UK job market. With employers exhibiting positive confidence and growing business sentiment in the UK economy, recruitment becomes a vital component for achieving success. While the market remains tight and skills shortages are problematic, there are some indications that the jobs market is becoming more balanced between employers and candidates.

At Love Success, we are committed to helping your business thrive by providing exceptional talent.  We have highly professional temporary and permanent candidates in our network who are ready to start with you today. Better still, if you book staff with us now, you will receive an Afternoon Tea valued at £200 at The Savoy Hotel, London.  So please send us an enquiry at the red button below, or call us on 020 7870 7177 to discuss your immediate recruitment requirements.