Report on Jobs - June
In this month’s Report on Jobs from the Recruitment and Employment Confederation (REC) there has been a noticeable slowing down of perm placements, with all other areas of recruitment seeing an increase throughout the month. At its slowest rate for 16 months, permanent placements are seemingly struggling due to a marked candidate shortage and concerns about the rising cost of living.
Following a steep increase in vacancies in May’s report, the level of vacancies is now slowing down to a more manageable pace for companies to get a handle on. This is based on temporary and permanent vacancies.
The UK is currently seeing lower candidate availability, with this declining rapidly throughout June. This is seen to be due to lower levels of unemployment across the country, fewer foreign workers, and candidates being unwilling to consider new roles due to the increases in the cost of living and other uncertainties within the economy. This has seen a marked impact on salaries, with salary inflation at its lowest increase since August 2021.
Although the whole of the UK is seeing a lesser uptake on permanent roles, the North of England is seemingly struggling the most, with London seeing the sharpest increase in temp roles being filled.
Chief Executive of REC, Neil Carberry commented:
“The labour market is still strong, with demand for new staff high. That said, today’s data show that we are likely to be past the peak of the post-pandemic hiring spree. That pace of growth was always going to be temporary – the big question now is the effect that inflation has on pay and consumer demand over the course of the rest of the year. Whether we will see the market settle at close to normal levels, or see a slowdown, is unpredictable at this point.
It is important to note that plenty of hiring is happening in this tight market – there are candidates out there for firms who get it right. Skilled recruitment professionals are at the heart of this, making a difference to opportunity and growth for companies and workers.”
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