Inflation is easing, but the recruitment market isn't (yet).

Inflation is seemingly under control (for now) in the US and UK, with the US posting figures of 3.3% and the UK of 2% respectively. Australia should be next, with inflation hovering around 3.6% but does that mean the stoppers are off on the economic slowdown? Unfortunately not it would appear, it seems sustained low inflation figures are needed before the Fed, BoE and RBA even so much as hint at a rate cut, 2024 cuts seem almost out of the question now, so what does this mean for the mid-term recruitment landscape?

It's quiet and it's going to remain that way for a while to come, of course it's only my opinion and I'll be delighted to proven wrong, but across multiple sectors we're seeing financial and economic pressures driven by high inflation and therefore heightened interest rates pushing the agenda to hire new talent further down the priority list. I've mentioned it several times but internal budgets, lack of market movement and feeble growth opportunities coupled with weakening consumer spending is leading to a slowdown in the need for new blood in many organisations, again I speak mainly of hires across the Commercial/Distribution suite (Marketing, Comms, Digital, Sales, Operations, Customer support) within our world of financial and professional services and not all the market, of course.

Outside of our world in fin and prof services, the market seems 'okay' with job adverts and unemployment levels still incredibly low, but FS and PS are usually at the coalface, the first to cull headcount in a shaky market and set the trend of what is to come. This also means the sectors are usually first to react when prosperity returns, hiring quickly and moving to ensure they capitalise on the opportunity to make profits, so hope is kindle.

More positively though, there are a few notable areas to buck this trend. Hiring and demand across CRM (automation) has been high, with businesses looking to utilise their existing client base to better cross and upsell on product lines. This can be coupled with Analytics, businesses are again focusing on the data of their existing client base to get more out of them, following the Pareto principle of 80% of revenue coming from 20% of customers. Sales recruitment also remains strong, with pressure on profits there is a demand for well qualified and experienced Sales professionals to come in and help to drive new and incoming sales to businesses and bolster the bottom line. There are other pockets of demand as well, not all of the market is flat but the general consensus is that of a slow, cumbersome, stagnant recruitment landscape.

I'm keeping positive, the recruitment market will get busier, it will get better, it always does. Navigating through periods like this present a vastly different challenge to the last three years and it brings out the battler mentality for the strongest in the market. As a Recruiter and small business owner, I appreciate the challenges that everyone is going through, whether it be a hiring manager banned from using external agency, Internal Talent teams finding themselves freed up to work across more roles and not require as much assistance, or even businesses preferring the direct sourcing method due to a perception of available talent on market. It is understandable that using external Recruiters is not as abundant as it has been and it's my job to add value where I can across more than just finding excellent candidates. Utilising our experience to help find the top talent is one thing but offering market insights, intelligence and helping businesses with long term strategic hiring plans is part and parcel of the careers we choose.

My value as a recruiter in a flat market is to keep connecting the best talent in market with potential opportunities. Now is a perfect time to engage with me to have a chat about your career, whether you're looking now or thinking about the next few years, with a less demanding schedule, career advice and networking is a powerful and useful way to spend my time so don't be scared to reach out and discuss how we might be able to help you. Likewise for clients as well, not all meetings need to lead to jobs, it's great to connect, network and be front of mind for when the demand for hiring returns.

Reach out on [email protected] or on my LinkedIn anytime.