Insights

"November marked a significant uptick in our permanent sales revenue, with an impressive 44% surge in the second half of the month compared to the first. While there was a slight dip in new vacancies and interviews, our overall tracking data indicates stability and a promising upward trend in the final week. The impact of the Chancellor's Autumn Statement and the broader economic landscape on the recruitment market will be worth observing. With inflation on the decline and interest rates likely to fall in the coming months, I anticipate a boost in business confidence and increased hiring activity."

““Education hiring typically has seasonal ups and downs, but the surge in demand at the start of the new academic year shows that schools, trusts, and academies are already struggling with staff shortages. As applications drop and demand rises, the education talent crisis seems likely to persist. While we appreciate the Labour and Conservative parties' focus on supporting the sector at their recent conferences, education needs action, not just talk.”

““The IT sector has been in turmoil for the past nine months, with tech layoffs impacting the market. However, an influx of active candidates is not necessarily bad news, given the skill shortage in the industry. What is noteworthy is the surge in applications for contract positions, suggesting that many professionals are choosing to pursue this more lucrative option as demand for permanent roles declines.

This will have a long-term impact on future recruitment in the profession for businesses and recruiters. As more experts capitalize on the opportunity to command higher pay through contract work, securing top IT talent will become increasingly expensive..”

“"South East England, a perennial hub for job opportunities, is expected to maintain its dominance, accounting for approximately 44.1% of all vacancies. While this is a slight dip from the 2022 figure of 46.8%, it remains a formidable presence. However, it is worth noting that South East England is set to experience the most substantial year-on-year decrease, with a significant -26.7%, followed closely by the East of England, which anticipates a -24.1% decrease.

In contrast, South West England is gearing up for growth, with vacancy shares estimated to rise from 24.1% in 2022 to 25.9% in 2023. An even more remarkable surge is expected in the Hybrid/Remote category, where vacancies are projected to increase by 11.1%."

“"In an enduring market that has faced the trials of recent times, this month's report presents a detailed portrayal of resilience and flexibility. While most indicators recorded a decrease, the unwavering persistence of job opportunities instills hope for the future. What truly catches the eye is the notable surge in average fixed salaries, climbing by 7% on a monthly basis and 2% compared to the previous year – a clear reflection of companies' endeavors to bridge skill gaps.

This downturn in indicators is not unexpected, considering the typically subdued trends observed in the month of August. However, taking a wider economic viewpoint reveals optimism, as wage growth outpaces inflation at 7.8%, even though inflation remains below the target. It remains to be seen how these elements will impact the data for November."

“The professional recruitment market seems to be in a slump. Month-on-month and year-on-year data shows decreases in all but two metrics. However, a deeper look at the data reveals some encouraging signs of growth.

The trends in the latter half of July, coupled with recent positive economic news, suggest that more profitable months lie ahead. While nationwide skills shortages and ongoing union-led pay disputes remain a concern, if inflation continues to fall and the economy keeps growing, consumer and business confidence should improve, which will benefit the recruitment sector.

The government also has a role to play in ensuring the UK has a plentiful supply of skilled workers to fill vacancies. A continued focus on training and better visa routes for overseas talent is critical to success."

“The healthcare sector has faced a skills shortage for some time. However, the recent decline in job applications is not necessarily a bad thing. This could be due to the recent public sector pay rises, which may have encouraged some workers to stay in their current jobs.

While this is good news for staff retention, it does not mean that the healthcare sector has enough skilled workers. Retaining workers is only one part of the solution. Attracting new staff is also critical. If the UK is to meet the growing demand for healthcare services, it needs to have access to a global pool of talent.”

““HR has gone through profound changes over the last three years, as the sector first grappled with Covid, remote working and associated issues. The subsequent surge in recruitment meant that departments were under pressure once again, in a way not seen before. Now as the market slows down, HR is facing a new wave of challenges, as the cost of living crisis hits, and business managers are looking to HR for guidance on everything from performance to compensation.
Hence in terms of what we have seen in recruitment terms this year, it is quite up and down. To start with, the 2023 forecast suggests a decrease of -27.7%, resulting in the number of vacancies falling below the 30,000 mark, with an estimated 28,242 positions available.”

““The decline in IT vacancies is not surprising, given the mass layoffs that have occurred in the sector this year as the economy struggles. However, it is important to note that many of these redundancies followed overly optimistic hiring during the post-pandemic boom. The limited pay increases that have been reported across the profession are concerning, given the need to strengthen the UK's tech skills. With the cost of living rising, there is a risk of further loss of expertise unless a more sustainable approach is developed. In our view, this includes reforming international visas to provide more viable entry routes for IT contractors and the self-employed..”