Review of the UK Jobs Market – August
Welcome to our Review of the UK Jobs Market for August 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.
Uncertainty over the outlook weighs on recruitment activity in August
The main findings were:
- Overall vacancies expand at slowest rate for 18 months
- Softer increase in starting salaries since June 2021
- Candidate availability falls at slightly weaker rate
Permanent staff appointments continue to rise
Though solid, the rate of growth was only slightly quicker than that seen in July. Greater overall demand for staff and the filling of vacancies has supported the latest upturn in placements. However, a deteriorating economic outlook, rising costs and candidate shortages has limited growth.
Temp billings expand at slowest rate for a year-and-a-half
Temporary placements increased for the twenty-fifth month running in August. Demand for temp staff was robust as clients were often keen to fill roles quickly in order to expand capacity and due to difficulties securing permanent workers.
Vacancy growth slips to 18-month low
Generally, there was a slower increase in temporary and permanent vacancies during August. Although rising markedly overall, both saw the lost readings since February 2021. The steepest increase in demand was seen for private sector staff, whilst short-term positions in the public sector eased to a 17-month low.
At 1,274,000, the overall number of vacant roles was down from 1,294,000 in the three months to April. Nevertheless, the figure remained very close to the all-time record of 1,299,000 and 55% higher than just before the pandemic.
Candidate availability falls at slightly weaker rate in August
The softer decline in overall candidate numbers was largely driven by a weaker drop in permanent worker availability during August. The latest decrease is linked to a generally low unemployment rate and skills shortages, though it’s also thought that greater uncertainty around the outlook and concerns over job security has deterred some people from seeking out new jobs.
August saw a renewed acceleration in the rate of decline in temporary staff availability. This was attributed to strong demand for staff and a preference for permanent jobs.
Starting salary inflation edges down to 14-month low
There was a sustained and sharp increase in salaries awarded to new permanent joiners in August. Although less sharp than previous months. Staff shortages and competition for candidates had reportedly pushed up salaries, as well as the higher cost of living.
Stronger rise in temp pay during August
August saw a further marked increase in average pay for short term staff. The rate of inflation picked up slightly from July, but was the second-softest seen in 14 months. Increased living costs and low candidate supply is said to be driving up hourly pay.
Source: KPMG and REC UK Report on Jobs 13 September 2022
Attracting and retaining top talent in Facilities Management is both an art and a science. As one of the UK’s premier Facilities Management recruitment agencies, we’ve been at the forefront of delivering real recruitment solutions for over 40 years. Our commitment is to provide peace of mind, ensuring that every hire seamlessly integrates into your […]
November is more than just a transition from autumn to winter; it’s National Career Development Month – a dedicated period to ignite professional growth and inspire individuals and organisations to invest in their career journeys. Let’s take a look at the strategies and initiatives that professionals and employers can embrace for career development. Crafting Your […]
Welcome to Catch 22, your trusted partner in Facilities Management recruitment. With over 40 years of dedicated service, we’ve been at the forefront of shaping the industry, providing real recruitment solutions that stand the test of time. In this blog, we delve into a critical aspect of recruitment often overlooked—the significance of soft skills in […]