The latest KPMG and REC UK Report on Jobs is packed with insights, uncovering the latest trends in the jobs market. This summary report provides an in-depth analysis of the UK's labour market trends, with a focus on key sectors relevant to office support roles in London.
Ongoing Challenges in a Stabilising Market
The latest report indicates that the UK labour market continues to navigate a period of uncertainty. Although there are still declines in staffing levels, the rate of decline has shown signs of stabilisation, and this is welcome news. The data shows contraction for both permanent and temporary jobs but averaged across the country, it’s a pretty stable picture.
Jon Holt, Chief Executive at KPMG UK, commented on the ongoing economic uncertainties: “While lower inflation has brought welcome stability to some sectors… overall business confidence continues to fluctuate.” This fluctuation is largely due to cautious hiring practices among firms that are waiting for clearer economic signals before making significant recruitment decisions. It’ll come, we just need to hold tight until it does!
Neil Carberry, Chief Executive of REC, noted, “It’s clear that there is underlying momentum in our jobs market, with temp hiring and private sector vacancies essentially flat.”
Salary Growth Slows Amidst Evolving Market Dynamics
Wage growth, while still present, is showing signs of slowing down which is welcome news for employers and should help boost hiring confidence. The data reveals that permanent starting salaries continued to rise but at the weakest rate since March. The Permanent Salaries Index stood at 50.7, suggesting only marginal growth. Temporary wages followed a similar trend, with the Temporary Wages Index at 54.4. The restrained growth in salaries suggests that employers may be adjusting to a larger available talent pool and are less pressured to offer significant pay increases to attract candidates.
Rising Candidate Availability: A Double-Edged Sword
Candidate availability continues to grow, and the number of candidates available indicates a robust increase in the supply of both permanent and temporary candidates. Factors such as redundancies and reduced hiring volumes have contributed to this trend, providing employers with more options when filling roles.
Regional Trends: London and The North Leading Recovery
Interestingly, London is showing resilience compared to other regions. The data shows a modest increase in permanent job placements in London, with the capital outperforming other regions in terms of job recovery. This is a positive sign for sectors like office support, where London remains a significant hub. Temporary jobs, however, saw a marginal decline in London, suggesting that while permanent roles might be on the upswing, temporary hiring remains cautious. However, month-on-month changes are marginal, again underpinning the resilience of the jobs market.
Looking Ahead: Optimism for Q4
There are signs of cautious optimism. Recent interest rate cuts by the Bank of England and a new government in place have led to hopes of more stable economic policies. However, businesses and recruiters remain in a 'wait and see' mode, particularly with the upcoming Autumn Budget, which could significantly influence hiring decisions.
As always, Love Success remains committed to navigating these complexities alongside our clients and candidates. Whether you are looking for your next career move or seeking top talent for your organisation, we are here to provide the support and expertise you need. Contact us today at 020 7870 7177 to discuss how we can help you thrive in these changing times.