As we reach the halfway point of the year, the macro view of English recruitment largely remains the same.
Amid economic instability and employer caution, permanent placements have dropped again.
The run-up to the General Election appears to have caused more placement disruption, particularly within the permanent market. Companies are displaying uncertainty and sourcing hires from within the contract sector, favouring flexibility while there is still doubt over the incoming government’s fiscal plan.
Candidate availability continues to climb while permanent starting salaries remain high and have risen at the fastest rate for 8 months.
The Recruitment Landscape – June 2024.
Here are the details beyond the headlines
Vacancies.
The Office of National Statistics data reveals that vacancies across the UK declined again in the 3 months to May, with the total number of vacancies standing at 904,000. There were 12,000 fewer vacancies in this period than the preceding quarter.
This is the lowest number since June 2021 and 156,000 fewer than 1 year ago.
Recruiters across the 4 areas of the UK confirmed this, indicating a modest decline in the demand for staff.
The primary source of the decline came from the permanent market where demand fell for the 10th successive month at a modest pace.
Amongst the temporary sector, the demand was largely unchanged with many organisations preferring the flexibility of temporary or contract staff at this time.
Public vs Private Sector.
The private sector experienced a marginal decline in the demand for permanent staff throughout June following a growth in May.
The temporary sector within the private market was more buoyant. June witnessed a third successive increase in the demand for temporary, private-sector workers.
The public sector saw a drop in demand across permanent and temporary markets. Once again, the rate of contraction was steepest for permanent staff.
Vacancies by industry sector.
June’s data revealed that 6/10 recorded industries saw a drop in the demand for permanent staff. The secretarial and clerical domain saw the steepest fall, while IT and Computing were not too far behind.
In contrast, Engineering displayed a strong demand.
The temporary market also. Once again, the steepest demand was within Engineering while IT and Computing saw a drop.
Skills in demand.
Within the tech and digital space, recruiters report that organisations are seeking the following skills and capabilities.
- Cyber Security
- Data professionals, particularly Data Architects and Data Engineers
- Developers – mainly front-end and full-stack
- Software Engineers
- IT Project Managers
- C#
- Java
- IT Infrastructure.
Once again, it’s been our experience that there has been a large crossover within the Growth, Operational and Customer spaces. We have had more requirements from many of our clients looking for Technical Business Analysts, Business Development professionals and professionals within the Account and Customer Success domains.
Our jobs page is here. Why not have a look for your next role?
Placements and billings.
Uncertainty over the economy and the run-up to the General Election has acted as a brake on hiring activity. It has caused more hiring placement disruption in June – particularly within the permanent market.
Recruiters have reported that permanent placements across England have fallen again extending the current downturn to 21 months. This period of political uncertainty has been more significant than the events of the last few months. The rate of contraction accelerated, and June’s decline was the most significant for 3 months.
This pattern was true across all 4 regions of England. The South saw the steepest fall, while the Midlands reported only a marginal reduction.
The temporary/contract market is slightly more upbeat.
June saw a marginal increase in temporary staff billings. This uplift is welcome and was the first lift we’ve seen since October 2023.
Recruiters across England told a tale of two halves. The Midlands and the North experienced an upturn, while the South and London reported declines.
Staff Availability.
Candidate availability across both the permanent and temporary markets rose again in June.
This rate of availability did soften from May’s 41-month high but is the 16th successive month that overall candidate availability has risen.
The biggest increase in permanent candidate availability was seen in the Midlands and London.
The availability of temporary candidates continued in June and extended the run of growth to 16 months. Although still rising, the rate of growth fell for the second consecutive month.
Recruiters indicated once again that they have spoken with many candidates following (or in fear of) redundancy. On top of this though, it was reported that there was a renewed optimism among candidates.
In the face of the cost-of-living crisis, candidates have been reluctant to actively seek new roles. The security and reliability of their current job had waylaid their desire to move. This seems to have shifted, however. Recruiters have noted that there are more passive candidates open to new roles.
Company restructuring and fewer vacancies were also identified as reasons we may have seen more candidates in the market.
The South saw the steepest increase in candidate availability while the Midlands noted the most modest rise.
Pay and Salary.
The ONS reported that salaries had risen again over the three months to April at an unchanged pace of +5.9%. Those employed within the public sector experienced quicker pay growth than workers in the private sector.
On the ground, recruiters found that the acceleration of permanent salaries and the daily/hourly rates paid to temporary workers had risen again in June.
This acceleration was the highest we have seen since October 2023 and extends the current run of growth to 40 months.
The fastest rise was seen in London and the North, while the South saw the softest salary increases.
In sum, we must look broadly to predict hiring activity in the second half of the year.
The outcome of the General Election may help to create a feeling of security and accelerate organisational recruitment strategies. The incoming Government will need to create a series of fiscal policies that improve the long-term macroeconomic conditions. This stability will help to create both confidence for businesses and investment in the UK market.
