Commentary from the REC is that employers are becoming more optimistic about both their businesses and the broader economic outlook.
London hiring trends are typically ahead of the curve in terms of what the rest of the country might experience in the coming months. Recruiters across the capital have reported a growth in permanent placements, indicating that the rest of us might expect the same.
The REC data also details that London has witnessed growth in permanent and temporary vacancies – another green shoot of hope for the rest of the UK.
But as we kick off the Q3, what do the data and anecdotal evidence say about July’s recruitment activity?
Read on to find out!
The recruitment landscape – July 2024.
Vacancies.
Official government data reports another drop in vacancies across the UK from the 3 months to June this year. The total number of open jobs is now 889,000 – the lowest number for 3 years. Compared to the same period last year, this figure is 150, 000 fewer. Despite this, it is still higher than pre-pandemic data. In March 2020 there were 796,000 open roles across the UK.
Recruiters across the 4 studied areas of England also reported another reduction in the number of overall vacancies. July was the 9th consecutive month of such activity, but the rate of contraction was modest and slower than June’s.
Perm vs Temp.
For the 11th consecutive month, permanent vacancies fell across July and were the primary source of the overall decline. however, as we suggested earlier, London did see a slight lift.
In balance, temporary vacancies rose for the 2nd month in a row. Although the lift was marginal, it’s rate of growth was stronger than the lift in June.
Public vs Private.
In the public sector, the demand for permanent and temporary staff fell again, with steeper contraction rates for both.
Once again, in contrast, private sector permanent vacancies rose marginally in July. This was the 2nd period of increase in the last 3 months.
Private sector temporary workers were the highest in demand. This vacancy category rose for the 4th consecutive month and to the greatest degree since October.
It is worth noting, that cultural events such as the European Cup football tournament will have falsely bolstered these numbers. Hospitality and leisure venues such as pubs and bars may have increased their staffing to accommodate higher customer volumes.
Vacancies by Sector.
Permanent.
Across the permanent market, 50% of the monitored industries grew in July. The strongest growth areas were within the ‘Medical and Healthcare’ and ‘Engineering’ sectors.
The steepest decline was within ‘IT and Computing’ and the ‘Professional and Executive’ areas.
Temporary.
The temporary market was up across 7/10 categories. This was led by the ‘Blue Collar’ and ‘Engineering’ sectors. Once again, the biggest fall was seen within ‘Professional and Executive’ and ‘IT and Computing’ markets.
Demand for Skills.
Within the IT and Computing sector, the skills in demand were as follows:
- AI Developers
- Automation testers
- Cyber Security
- Data Engineers and Data Scientists
- Developers (specifically Java and Full Stack Developers)
- Analysts.
We can also add that we have seen a heightened requirement across Customer Success and Account Management. This is indicative of the optimism and growth SaaS and technology businesses are enjoying. As digital solutions are becoming more widely adopted, professionals who are skilled in nurturing those relationships will be required to facilitate ongoing growth and prevent customer churn.
Placements.
Permanent placements.
As mentioned, the permanent market saw a reduction in the number of permanent placements made in July. This takes the current rate of decline to 22 months. The rate of contraction was solid, but on a positive note, it was less steep than in June.
Anecdotal reports suggest that this can be explained by another increase in available candidates, coupled with a fall in vacancies and requirements.
The fall was most steep in the South region, whilst London was the only area that reported an increase.
Temporary billings.
July saw a small reduction in temporary billings after June’s growth. This decline has been explained by a reduction in organisational activity and the non-extension of expired contracts.
Despite this, temporary billings rose in the Midlands and the North but fell in London and the South.
Where there was growth, this was driven by the hospitality and leisure industries.
Candidate Availability.
Across July, candidate availability increased once again. The rate of growth was considerable and above the recent trend. The latest data brings us to the 17th month of rising active job seekers across both temporary and permanent markets.
All areas saw growth but was led by London and the North. Candidate growth was the slowest in the Midlands.
Pay and Salary.
Permanent salaries.
Continuing the 3-and-a-half-year trend, permanent salaries rose again in July. The rate of inflation was marked, but a little softer than June’s recent high.
This was attributed to the competition to attract new hires amid a lack of suitable candidates.
Permanent pay increases were sharpest within London and the North, while the South and the Midlands experienced modest inflation.
Temporary and contract pay rates.
Daily and hourly pay rates rose again in July, but the rate was marginal and the weakest in 41 months.
It is thought that April’s increase in Living and Minimum wage rates is still having a ripple effect on temporary pay.
The North of England saw the steepest increases, while the South recorded a drop in temporary pay rates for the first time in over 3 years.
What do you think?
Are you a recruiter or part of your organisation’s talent team? How are you finding the job market at the moment?
We’d love to hear your experiences and your forecasts for the remainder of Q3.
Or perhaps you are a job seeker looking for your next permanent or contract role. How are you finding the search?
Leave your thoughts in the comments section…we’d love to read them!
