Good news for London employers and job seekers alike: the latest data from the Recruitment and Employment Confederation (REC) and KPMG Report on Jobs shows positive signs of growth and increased confidence in the UK economy. While the labour market remains tight, the overall picture is far from the bleak forecast many anticipated for 2023. It looks like the tight market is easing and that’s great for candidates and employers.
Let’s take a closer look at the key findings:
Permanent placements easier to fill
While it’s still challenging for employers to fill permanent vacancies, it’s becoming easier. In fact, temporary staff hires have grown at the fastest rate since September 2022, with three out of four English regions registering growth in temp billings, led by London. This reflects the standard pattern in times of economic uncertainty, as employers remain wary of making long-term hiring decisions and turn to temporary workers to fill gaps and remain productive.
Candidate availability rises for the first time in over 2 years
It’s been difficult for employers to find large and diverse pools of candidates, but the latest data reveals a welcome shift in candidate availability in March 2023, increasing for the first time in 25 months. This indicates that the extreme tightness of the labour market is easing, likely due to increased confidence among job seekers and redundancies due to economic uncertainty. The rise in candidate availability is especially significant in London.
Pay continues to rise sharply
Starting salary inflation and the amount employers are paying temps continues to increase sharply, reflecting the ongoing skill shortages combined with cost-of-living pressures. While starting pay inflation is particularly intense in the North, it remains a trend across the country.
Demand for staff remains high
Vacancy numbers continue to increase, although this growth is easing slightly. Employers recognise that getting the best talent is essential for weathering a difficult economic climate and thriving in the future.
In particular, the demand for skilled professionals in office support in London is on the rise, as the city continues to be a hub for innovative industries such as tech, finance, and creative arts. As companies expand and adapt to new market demands, the need for talent is becoming increasingly important. This presents a great opportunity for job seekers with sought-after skills and experience, as well as for employers looking to attract and retain top talent
Confidence is growing
Overall, business confidence in the UK economy continues to grow, rising by 13% on the previous quarter, which is a positive sign for both employers and job seekers. The REC Chief Executive, Neil Carberry, notes that the increased candidate availability is a significant change, and while the market remains tight, it should be gradually getting easier for firms to hire over the next few months.
We’re here for candidates and employers
At Love Success, we remain committed to helping employers and candidates navigate the job market as it presents today. While the market remains tight, our skilled recruitment consultants are essential to match available candidate supply with employer opportunities. The latest data shows that while there are still challenges to navigate, there is also room for optimism and growth in London’s job market.
Do you need qualified staff now?
We have highly professional temporary and permanent candidates in our network who are ready to start with you today. Better still, if you book staff with us now, you will receive an Afternoon Tea valued at £200 at The Savoy Hotel, London.
So please send us an enquiry at the red button below, or call us on 020 7870 7177 to discuss your immediate recruitment requirements.