Each month we gather UK-wide data to provide a comprehensive analysis of the current state of the UK labour market to offer valuable insights into trends, opportunities, and challenges, and to determine the current impact on the commercial and office support sector.
Resilience in a complex market
Despite the complexities of the current economic landscape, the UK labour market demonstrates resilience. Jon Holt, Chief Executive of KPMG in the UK, notes that while overall demand remains weak, the pace of decline has slowed for the third consecutive month. This suggests a stabilising trend as firms gradually begin making hiring decisions. The historically low unemployment rate and the ease of filling vacancies in comparison to pre-pandemic levels provide a foundation for optimism moving into the second half of 2024.
Trends in permanent and temporary jobs
Permanent placements have continued to fall, marking the twentieth successive month of decline. However, the rate of contraction in May was the slowest since March 2023, reaching a 14-month high. This modest reduction indicates a cautious recovery, with specific sectors experiencing growth despite the overall trend. Those placed in temporary jobs also showed signs of improvement, with the contraction rate being the weakest in four months. This trend is particularly encouraging and reflects a growing demand for temporary staff.
Rising pay rates
The competitive landscape has driven further increases in pay rates. We’ve seen notable rises in starting salaries for permanent and temporary roles, continuing the trend observed since the beginning of the year. This is partly due to the ripple effects of the April increases in national minimum and living wages. Worker availability also surged to its highest level since December 2020. This rise in availability is more pronounced for permanent roles, indicating a rich pool of candidates for employers to choose from.
Looking ahead
Neil Carberry, Chief Executive of REC, suggests that business confidence is poised to rebound, supported by anticipated political stability post-election and falling interest rates. This potential energy within the economy could translate into more active hiring and reduced caution among employers.
For both job seekers and employers in the office support sector, the latest data offers a mixed but cautiously optimistic outlook. While challenges remain, the signs of stabilisation and the potential for increased hiring provide hope. Staying informed about these trends will help candidates better navigate their job searches and allow employers to strategize effectively in attracting and retaining top talent.
Staying informed about labour market trends is crucial for both job seekers and employers in the office support sector. By understanding the current landscape, we can navigate challenges, seize new opportunities, and contribute to a vibrant and adaptable job market.
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