As a valued member of Juice’s recruitment community, we were keen to share the latest findings from the Recruitment and Employment Confederation’s June Jobs Outlook report.
Recruitment has always been a barometer of the economy so the findings really do provide an insight into the recruitment landscape, the challenges posed by the current recruitment market and strategies to overcome those obstacles successfully.
We will be looking at data for the South based on staff appointments, candidate availability, pay trends along with hearing from Juice’s experts, Emma and Vicky who share their thoughts on the findings and what the information really means to us.
- APPOINTMENTS
The number of people placed into permanent jobs in the South of England declined for the third straight month in June.
The rate of contraction eased from May’s near three-year record but remained sharp overall.
The subdued business confidence around the outlook weighed on hiring decisions.
Candidate shortages also limited placements, according to panellists.
Adjusted for seasonal influences, temporary recruitment signalled an increase, a consistent result seen within recent months.
The upturn was supported by a firmer demand for temporary staff, and the expansion outpaced that seen across the UK as a whole.
- CANDIDATE AVAILABILITY
The latest findings revealed that the number of candidates available for permanent jobs in the South of England increased at a sharp and accelerated rate in June.
Furthermore, the pace of expansion was the steepest recorded for two-and-a-half years.
The upturn was also slightly faster than that seen across the UK as a whole.
Redundancies were cited as a key reason pushing up candidate numbers, whilst recruiters mentioned more people were willing to seek new roles.
The availability of temporary candidates in the South of England increased for the second straight month in June.
- PAY TRENDS
Average starting salaries for permanent workers in the South of England continued to increase at the end of the second quarter.
The increase however was the slowest recorded of all four English areas monitored by the survey.
Competition for skilled candidates was cited as the principal factor driving up starting salaries.
The higher cost of living also pushed up temporary pay.
- JUICE’S THOUGHTS…
Emma Summers, Juice’s Chief Executive says of the findings:
“Statistics from June’s hiring figures shows that businesses are turning to temporary staff in the face of uncertainty.
There was a sharp increase in permanent candidate availability , the highest we have seen since the end of 2020, and the availability of temp candidates has also improved sharply in the region.
This is likely driven by people reacting to high inflation by stepping up their job search, and by some firms reshaping their businesses in a period of low growth. It’s no surprise, therefore that starting salary inflation fell to a 27-month low.
Despite these trends, the employment market remains very tight. There are still broad skills shortages, within accountancy, construction, engineering and nursing with these sectors struggling to find and retain workers.
This is despite seeing the supply of candidates across the UK job market consistently rise.
Interestingly, the growth in vacancies for staff in hotel & catering and blue-collar positions in the South of England, and for temporary positions in retail across the UK, suggest businesses anticipate that people are still prepared to spend their wages on goods and services despite the fall in their purchasing power and the wider cost-of-living crisis. I am sure that June’s warmer weather helped in driving demand too.
Long-term progress rests on the UK being a great place to invest. A strong industrial strategy with people at its heart would help overcome labour and skills shortages, acknowledging the wide range of choices that people have about how they work.
Most importantly we need to promote growth and confidence in the economy which dictates every element of peoples purchasing power!”
Commenting on the latest survey results, Vicky Kingston, MD of Juice, said,
“The sharp upturn in candidate availability this month – the highest for two and a half years – is a clear sign that employment is reflecting the effects of a sustained slowdown in the economy.
Employers are leaning towards temporary hires, given the continuing economic uncertainty. And yet, the labour market remains reasonably resilient, with notable demand for skilled workers, both permanent and temporary, across a multitude of sectors this month.
There is still a clear mismatch between open vacancies and the skills of available candidates and our teams are continuing to manage businesses expectations by focussing on upskilling and reskilling.”