Looking back over the last 3 months, it has been a whirlwind. The demand we have experienced for talent throughout the autumn has been exceptional. And as we plow into the new year, it shows no sign of slowing.
Our established clients are in bounce-back mode, reflective of the overall economy and the wider hiring patterns across the UK. Meanwhile, we are enjoying conversations with new clients who are prioritising hiring as we end 2021.
It’s beginning to become a running theme, but as we reflect on November, we must echo the sentiments of the last couple of months. Availability of talent continues to be a significant hurdle. As it stands, the supply of tech talent cannot meet the demand.
In the short term, this lack of talent is at best frustrating. However, looking long term, it poses a significant and dangerous problem for individual companies, entire sectors, and of course, the wider economic recovery. The economy was battered by Covid19, and its long-term sustainability is dependent upon having the talent to rebuild it.
However, talent shortages aside, there are positive messages from November’s recruitment data. Let’s dive in and see what the headlines from November’s recruitment data have to offer.
The Lowdown.
Vacancies & hiring activity.
The recruitment data for November reveals that the total number of vacancies continued to rise for the 10th month in a row. However, despite the continued growth, the rate of expansion was the softest we have seen in 6 months. This pattern is true across both temporary and permanent vacancies.
November’s data confirmed that the largest growth in demand could be seen in the private sector. Permanent private sector roles had the steepest increase in vacancies, while the softest increase was seen in permanent public sector roles.
The Office of National Statistics can back up this finding. Official data reinforces that the UK has seen an increase in job vacancies over the last 3 months. Vacancies have risen from just over 1.1million in August to 1,172,000 in November. This number is 118% higher than this time last year, and 45% more than the pre-pandemic level of 811,000.
In fact, November reached the highest level of vacancies since the series began.
So, vacancies remain high. How about actual placements?
Placement activity.
Despite a lack of candidates, November saw a strong hiring rise, the 5th fastest on record. The number of permanent placements rose more sharply than throughout October and continues to exceed temporary billings.
Permanent appointments rose for the 9th month in a row. Recruitment professionals attribute this growth to both a surge in vacancies and the high demand for staff. However, they also conceded that many roles remain unfilled thanks to the broader issue of candidate availability.
This pattern was true across all 4 areas of the UK. The Midlands and London enjoyed the strongest upturn in placement of permanent staff, while the South reported the slowest.
Our thoughts.
We can echo these thoughts at Ignite. We are enjoying working on an abundance of roles, covering many of the skill sets within the tech, digital, and data workspace. We have enjoyed many successes throughout November, pleasing our clients by finding them several senior and ‘Heads of’ positions that they were struggling to fill.
We would also report several hiring managers who have become more open to finding a solution within the contractor market. Through our conversations with them, we have found that a lack of permanent candidates is encouraging them to widen their lens and consider hiring a contractor for a more ready talent solution.
The world of contract work is more geared up for the levels of uncertainty that the permanent candidate pool is unfamiliar with. As a rule, contractors are somewhat nomadic; ready to move on, find and accept new roles quickly.
We have found that permanent workers are more risk-averse, less willing to ‘jump ship’ into this unknown and changeable situation. Many thinkers have attributed candidate shortfall to job insecurities throughout the pandemic. Those who may have taken a gamble at a new role pre-pandemic, are choosing the security of their current job over new challenges at new places.
Vacancies by Sector.
Bearing in mind our workload, we weren’t surprised to learn that the steepest rise in permanent vacancies were to be found in the IT and Computing sectors.
The skills in demand have some similarities to previous months, with our peers reporting demand for professionals with the following skills.
- Business Intelligence & analysts
- C#
- Developers
- Software Engineers
We would agree with all these, particularly in relation to the Software Engineers and Developers. But would add QA Testers and DevOps Engineers to this list.
Pretty much all our clients are on the lookout for IT professionals with these skills. Additionally, we have also seen a jump in clients who are looking for ‘Heads Of’ and other leadership roles.
Staff Availability.
As the hiring activity and vacancy data confirm, the levels of candidate availability are still substantial. November marks the 10th month in a row that recruitment professionals have seen a significant shortfall in the supply of permanent candidates who are hunting for new roles.
This rate of reduction is the softest we have seen since May, however. Despite this small ease, the numbers remain low and as we discussed earlier, pose a long-term problem for the recovery of the economy.
This finding is reflective of all 4 areas of the UK that were analysed.
For more of our thoughts on the reasons behind the candidate shortfall, you can read our blog here.
Pay and Salary.
The close of 2021 is a great time to be a job seeker. Not only are employers falling over themselves to hire you, but you can also expect a handsome reward!
Starting salaries continued to escalate in November and have increased month on month since March. Last month, this rate of inflation hit a new high for the 5th month in a row.
Looking at the individual areas of the UK that were studied as part of the data collection, the Midlands recorded the sharpest rise in starting salaries, while London noted the slowest.
Here at Ignite, we too have noticed that salaries have become more generous, as have benefits packages and employee reward programs.
Looking forward.
As we write, organisations across most sectors still have hiring at the front and centre of their business strategies. Looking back on 2021 the UK has enjoyed 9 months of growth in permanent placements and rising vacancies. For now, the economy appears to be bouncing back.
The tail end of November saw a renewed concern over yet another new variant of Covid19. And now in mid-December, it’s unclear what the effect Omicron will have on the labour market. What is clear though, is that uncertainty does not encourage job seeking. This new wave is likely to encourage candidates to echo their activities of the past 18 months; bunker down and wait for the storm to pass!
The demand for staff may require a new approach from employers. Perhaps it’s time to focus on retraining the staff we have, rather than seeking those that aren’t there? There are also new technology trends on the horizon for 2022 with the potential to enable organisations to develop their businesses in the absence of highly certified tech, digital, and data professionals. For example, could Low-Code and No-Code solutions be the answer for those organisations seeking to facilitate digital growth?
The data from November looks positive for candidates. Skills are at a premium and if you have these, you can bet that seeking a new opportunity in 2022 will be a fruitful resolution.
