Recruitment activity in August is often slow so any recruitment data taken over this period is often a poor predictor of the ongoing market.
The summer holiday season stagnates activity. Candidates, hiring managers and decision-makers are all off enjoying a well-earned break. This slowing down delays interviews, placements, vacancy advertising and candidate applications.
The Recruitment Landscape.
In these monthly insights into recruitment activity across England, we look at the main industry KPIs, placements and billings, vacancy levels, candidate availability and salary.
Using data and anecdotal evidence from recruiters across the UK, we can determine patterns and trends that help to predict future activity.
August’s numbers appear to extend some long stretching patterns. As a result, it’s probably fair to deduce that the holiday season has had some effect but is certainly not the main protagonist of the survey’s findings.
Here are the findings from our industry across August.
The Recruitment Landscape – August 2024.
Vacancies
When compared to the preceding 3-month period to April, the ONS reported a 25,000 decline in the number of open vacancies in the three months to July 2025.
In July, the UK reported 884,000 job vacancies. Year on year, this is 140,000 opportunities fewer than the same period in 2023. Although this is the lowest level we’ve seen for 3 years, it’s still higher than the pre-pandemic figure of 796,000.
Evidence from the recruitment survey respondents seemed to confirm the national picture. Respondents reported a decline in the number of open requirements in August, extending the current period of decline to 10 months.
However, the rate of decline since July was marginal.
This was true across both the permanent and temporary markets. This trend has been true of the permanent market for some time. Vacancies in the temporary market have been more plentiful over the last quarter, but they too saw a slight drop in August.
Public vs. Private sector.
Permanent vacancies in the private sector fell in August following marginal growth in July.
Within the temporary market, we saw very little change in private sector opportunities after 4 months of growth.
Data from within the public sector told a different story. Permanent vacancies dropped markedly and fell at the greatest rate in 3 months. The decline for temporary staff was less pronounced but still significant.
Vacancies by sector.
50% of all the industry sectors studied reported a decline in permanent vacancies.
Within the permanent market, IT and Computing witnessed the steepest drop, while professionals within the care, nursing and medical sectors were highest in demand.
Temporary vacancies declined in 70% of sectors. Executive and Professional contracts dropped most steeply, while IT and Computing temporary positions also fell considerably.
Demand for skills.
Within IT and Computing the following skills and job roles were most in demand.
- Automation Testers
- Cyber Security professionals
- Data professionals including Scientists, Engineers and Architects
- Developers (especially java and full stack)
- Software Engineers
- Senior Leaders including IT Directors, Senior IT Management.
At Ignite Digital, we have had requirements for these roles and more. We have been working on a brilliant Chief Technology Officer role and an exciting Automation Test Engineer role over the last few weeks. Follow the link to read more about these fabulous technology job opportunities.
Placements and billings.
Permanent placements.
Continuing a trend that stretches back to October 2022, permanent placements fell again in August. On top of this, the rate of contraction accelerated and was the steepest since March. Although we probably can’t attribute the ongoing trend to the summer break, we may be able to assign the acceleration to summer holiday delays.
The South saw the steepest fall while recruiters in the North reported little change.
Temporary billings.
August was the 2nd successive month we saw a decline in temporary billings. This was thought to be down to a triad of factors; lack of demand, cost cutting measures and non-renewals of contracts.
Once again, London and the South supported these numbers, while the Midlands and the North witnessed a growth in temporary billings.
Candidate availability.
August was the 18th successive month in which candidate availability rose. This trend was similar across both the permanent and temporary markets.
As has been the ongoing trend since March last year, temporary and contract workers were also more actively searching for new assignments. Of note though was the rate of increase. August saw the greatest increase in 4 months.
The South and London saw the greatest rise in permanent and contract candidates while the Midlands only saw a modest increase in both.
Pay and salary.
Permanent starting salaries increased again in August taking the current period of inflation to 3.5 years. Recruiters have found that clients are more willing to negotiate on salary, especially in areas and industry sectors low on skilled candidates.
The strongest salary uplifts were seen by recruiters in The North and London, while both the Midlands and the South saw solid increases.
Hourly and daily pay rates also escalated over August, though at the slowest pace for over 3 years.
Anecdotal evidence suggests that a greater supply of temporary workers helped to limit the pace.
Once again, the North saw the highest temporary pay rate growth, while London and the South both saw falls.
In conclusion.
In conclusion, restrictive monetary policies continue to create an environment where business confidence is fluctuating. The sharp contraction of permanent placements, the decline in vacancies and demand, and growing candidate numbers, are extending the downturn in the UK labour market.
This is a challenge for both clients and candidates. Both need to show resilience, adaptability and careful planning moving as we approach the final quarter of the year.
Regional variations are also evident. The North of England experienced more steady and positive recruitment patterns. This region had very little variation in permanent placements. Growth in temporary billings and pay increases also indicate that positive growth is being experienced there.
