Review of the UK Jobs Market – April

Review of the UK Jobs Market – April

Welcome to our Review of the UK Jobs Market for April 2022. Each month, we share market insight on the state of the UK jobs market.

You can either read our short blog, or see our infographic.

Tight labour market conditions lead to further rapid increase in starting pay

The main findings were:

  • Starting salary inflation holds close to record high
  • Labour shortages lead to slower rise in staff placements
  • Demand for staff remains robust

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Staff Appointments

Permanent placement growth slips to 13-month low

April saw a further slowdown in growth of permanent appointments. Though sharp, the rate at which permanent placements increased was the slowest seen since March 21. Increased activity and robust demand supported the latest rise.

Weakest expansion in temp billings for a year

As has been the case since August 2020, the number of hours worked by temporary workers increased again in April. Albeit the growth was the softest seen for a year. Higher workload and a greater need to fill vacancies has helped increase hours in April.

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Vacancies

Demand for staff continues to rise markedly in April

Total demand for workers has now increased for 15 successive months, with the latest rise supported by higher vacancies for both permanent and temporary staff.

At 1,288,000 the number of open positions rose from 1,238,000 over the final quarter of 2021. This is more than double the number of vacancies over the same period last year and over 50% higher than just prior to the pandemic.

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Staff Availability

Slightly softer drop in overall candidate numbers in April

The availability of candidates for permanent roles declined for the fifteenth successive month in April. Though rapid, the rate of decline was the softest seen since the start of 2022. There are still reports that COVID-19 and geopolitical uncertainty had made people more cautious about seeking new roles. The availability of staff for temporary roles also fell notably in April. This was due to a generally low unemployment rate, a lack of foreign workers and a greater preference among some candidates for permanent roles.

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Pay Pressures

Starting salary inflation holds close to March’s record pace

Candidate and skills shortages continued to place substantial upward pressure on rates of starting pay as firms competed for staff in April. This was seen across all four English regions.

Temp pay growth slips to three-month low

Average rates for temporary workers also increased at the start of the second quarter of 2022. This was due to strong demand for workers and low candidate supply, which had often led to pay negotiations.

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Jobs Market Review April

 

Source: KPMG and REC UK Report on Jobs 12 May 2022

Information, Intelligence 13 May 2022 Written by Marketing