It’s been an unusual and worrying month for the UK economy. Despite the maelstrom that’s been occurring in the UK economy since the Truss/Kwarteng mini-budget, U-turn and ultimate end of a very short ministerial era, the jobs outlook in the UK is still looking robust. This month we analyse the most recent data from the REC’s Report on Jobs and ongoing research with our partners, and it has to be said, the recruitment market, despite adversity, is steadfast and in a growth phase.
The end of 2022 is being characterised by rising inflation and interest rates in the UK, and undoubtedly, this will ultimately impact the jobs market. However, while there has been a dip in employer confidence, fundamentally the landscape remains positive for employers and candidates. We have been riding the post-pandemic recovery which was characterised by a record number of vacancies and exceptionally low unemployment, so there’s plenty of room for comfort. It has to be said that these relative highs, compared to pre-pandemic times, give us some buffer zone to weather the disruption caused by the country’s most recent political turmoil.
Recruitment activity slips but remains strong
There remains a relatively strong demand for new staff and hiring. Recruitment activity is still increasing, just not quite at the rate of knots we have seen previously. This is true for both permanent and temporary jobs in London and across the country. We’ve had sustained increases month on month for well over 18 months now, and demand for staff remains high. It is still very much candidate shortages that are primarily putting the brakes on growth.
Rises in the demand for permanent and temporary staff continues
Demand for staff is still growing and has been since February 2021, but the pace of this growth is now easing too. Data continues to show that there is high demand for both temporary and permanent staff, with notable increases in temporary jobs. The Office for National Statistics (ONS) reveals that vacancy growth is easing, but the number of open roles is still 20% higher than a year ago. Interestingly, in September, secretarial and clerical temporary job vacancies grew the most and didn’t slow down compared to other categories. As employers struggle to find permanent staff, demand for those ready to do temporary jobs in London continues to grow.
Starting pay and wages continue to rise
The good news for those worried about the cost of living crisis is that starting salaries and wages are continuing to rise, albeit a little more softly than before. With 19 months of salary increases, London has seen the steepest increase in permanent pay.
The time to start recruiting for 2023 is right now. We are helping our clients to plan and build their teams for 2023, and we would love to help you too. We have highly professional temporary and permanent candidates in our network who are ready to start with you now, and we can fulfil and have a signed contract for a permanent role within 48 hours. So please send us an enquiry at the red button below, or call us on 020 7870 7177.