Current Labour Market Conditions - March 2022 Update
Welcome to our March update on current UK labour market conditions, a bitesize edition of news and statistics that have been collated by the Recruitment and Employment Confederation (REC) and KPMG UK and presented in their Report on Jobs. Read to the end for some recommendations on how to find success despite all the setbacks that hiring is having at the moment.
Current findings in the KPMG and REC UK Report on Jobs survey draw attention to “softer rises in hiring activity” through March. This indicates that although permanent and temporary vacancies are being filled, the increase is not very steep. Accordingly, candidate shortages are increasing at the quickest rate for four months and because of this demand, starting salaries and pay rates are rising at the “quickest rate on record in March”.
The survey, created by answers from a panel of around 400 UK recruitment and employment consultancies, refers to a number of factors that panellists say are contributing to the lack of workers. These include the Ukraine war, fewer EU workers, low unemployment, uncertainty around the pandemic and higher demand in general. With these fluctuating uncertainties present, it is possible to see why starting salaries are being raised so high. A record high in fact; the rate of inflation has been “the sharpest in 24-and-a-half years” according to the REC.
Neil Carberry, Chief Executive of the REC commented on these results; telling businesses how to overcome difficulties by embracing innovative ways of reaching candidates, improving their searches and thinking about how attractive they are as a company.
Matthew Hopson, Operations Manager here at Impact Recruitment, adds that employers can use recruiters to improve their Employee Value Proposition, including retention of current staff. “Recruitment consultancies do just that, they provide advice and guidance to clients as part of a solution that works for the client and their stakeholders. Talking with us about recruiting more diversely, reaching new audiences, and retaining the staff you have is key to overcoming the turmoil and coming out stronger on the other side.”
With the rising costs of living, it is possible we will see economically inactive people re-join the labour market, alongside postgraduate students who stayed studying instead of entering the workforce during the pandemic and this will help relieve some of the pressure facing businesses.
For a tailored approach to your specific workforce needs, you can get in touch with Matthew by emailing Matthew.Hopson@ImpactRecruitment.co.uk