Insights from the Latest KPMG and REC UK Report on Jobs: Emerging Trends and the Benefits of Working with Red Rock Partnership

Following the recently published report by KPMG and REC UK we can identify how complex the current UK market really is. In today’s fast-paced and modern society, the future of work is widely discussed, especially regarding the UK’s current evolving economic landscape.

?The report offers some important insights on these changes and highlights the current and new trends that are set to influence the job market in the coming future.?

So, what exactly are the implications of these trends and how can clients and candidates stay ahead of the curve?

We know that the world of work is constantly changing, with new challenges arising and the job market shifting we can assist you in discovering what new opportunities can be found within this ever-changing landscape. Our commitment is to provide tailored recruitment solutions that not only meet the current demands of the market but also anticipate future trends giving you that ability to stay on top.?

By using latest insights from industry-leading reports, like the?KPMG and REC UK Report on Jobs, we are uniquely positioned to help our clients and candidates navigate the complexities of today's employment landscape. Whether you’re looking to find candidates with a specific skill set or you’re on the hunt for your forever working family, Red Rock Partnership is here to guide you towards success!?

The Current Economic Landscape

The UK economy is facing a period full of new challenges and complexities. For instance, inflation is high and still increasing, currently exceeding the Bank of England’s 2% target,??this alone continues to pose challenges towards businesses and individuals throughout the country. At the same time, a clear lack of labour continues, with unemployment rates reaching new lows. On the other hand, the number of job vacancies, although declining from their peak, remains at a high. This truly shows the diverse and complex nature of our current market. Moreover, the cost-of-living crisis also adds a layer of uncertainty to the economic situation, which is also affecting wage expectations and more.

According to the KPMG and REC Report, while there has been a slight decrease in the hiring of permanent staff, the demand for temporary and contract workers remains strong. This trend indicates that businesses need flexibility in an unpredictable environment. Employers are becoming more cautious, trying to strike a balance between maintaining operational efficiency and controlling expenses in the face of economic instability.

Key Employment Trends

1. Increased Demand for Flexible Work:?According to the report, there is a growing trend that shows flexible and remote working arrangements are preferred. As firms have adjusted to new operational realities, the demand for hybrid work models continue to grow. This flexibility is no longer a bonus, but rather being seen as a norm and necessity by many professionals, allowing firms to attract top talent in a competitive market instead of limited to specific geographic hiring or migration. It also allows potential candidates to have other priorities, establishing a more equal Work-Life balance.?
2. Skills Shortages:?Despite the fall in permanent employment, there is still a clear lack of skilled workers in important industries. These include the likes of technology, healthcare, and engineering. This gap in skills is raising wages and forcing businesses to offer more benefits to attract and retain talent.
3. Automation and Digital Transformation:?Automation and digital transformation are reshaping industries. Businesses are investing in technology to increase productivity and minimise dependency on manual operations. However, this transition increases the demand for workers with digital and technological abilities, escalating the rivalry for top talent.?
4. Diversity and Inclusion:?The emphasis on diversity, equality, and inclusion remains strong, with clients increasingly prioritising this in their hiring practices. A diverse workforce is increasingly recognised as having the potential to foster innovation and better reflect the customer base, resulting in better business outcomes.?

We conducted a Poll on LinkedIn, titled ‘what is the most important factor for you when choosing a new job opportunity?’. From the options given, we found that 75% of participants favour ‘Work-Life Balance’, 20% go for ‘Company Culture/Values’. And 5% have their focus on ‘Competitive Salary and Benefits’. These results align with the current key employment trends and shows what creates the highest level of job satisfaction and what candidates may be looking for when considering job opportunities. Therefore, the biggest factor is the key employment trend of increased demand for flexible work and the option of Work-Life balance aligns. Similarly, with the likes of Diversity and Inclusion with Company Culture/Values.?

What Does This Mean for Recruitment?

Recruitment agencies, like us here at Red Rock Partnership, play a pivotal role in connecting employers with the right talent. In this evolving landscape, here’s how both clients and candidates can benefit from partnering with us:

• For Clients (Employers): In the face of skills shortages, working with a recruitment agency can provide access to a broader pool of talent, including passive candidates who may not be actively seeking a new role but are open to new opportunities. At Red Rock Partnership, the incorporation of our Permanent Division allows for guaranteed industry experts. Our Permanent Division aims to be your perfect matchmakers, with our thorough candidate screening process and strong values, we’re here to help you. We also offer valuable insights into current market trends and salary benchmarks, helping businesses make informed hiring decisions. Moreover, in a tight labour market, we can facilitate quicker hiring processes, ensuring that businesses secure top talent before their competitors do.
• For Candidates: Candidates can benefit from the expertise of our team, who have multi-industry knowledge. This will help aid our candidates in navigating the complex job market and find exactly what they’re searching for. Whether they’re after a temporary placement or they want to find their permanent working family - we can match candidates with roles that align with their skills, experience, and career goals, helping you find those perfect opportunities. Furthermore, we can offer guidance on how to stand out in a competitive field, from CV optimisation to interview preparation. At Red Rock Partnership, we put people first!?

Navigating the Future

The employment landscape in the UK is undergoing significant changes at an unprecedented pace. Those that are being driven by economic pressures, technological advancements, and shifting workforce expectations. As businesses and workers alike adapt to these new realities, the role of partnering with recruitment agencies becomes increasingly more important.

For businesses, partnering with a recruitment agency is no longer just about filling vacancies; it’s about strategic workforce planning and ensuring that you have the right talent to thrive in a challenging and evolving environment. For candidates, recruitment agencies offer valuable resources to help navigate a competitive market and finding roles that offer both professional and personal fulfilment. We are driven to connect top talent with top opportunities. Finding the best matches for both our clients and our candidates.

As the future of work continues to unfold, it’s important to stay informed and become adaptable to the changes – this will be key to success. The insights given from the KPMG and REC Report on Jobs highlight the significance of flexibility, the increasing value of digital skills, and the ongoing need for a diverse and inclusive workforce. By using the expertise of recruitment agencies, both employers and job seekers can better position themselves to take advantage of the opportunities that lie ahead.

In conclusion,

It’s clear to see that the current economic state of the UK, characterised by the current rates of inflation and tightening labour market, is being defined by both the challenges and opportunities candidates and clients are facing. The future of work is likely to be moulded by the consistent demand for more flexibility. The gap in skills is also notable. In addition to these, there is a need for businesses to embrace digital transformation more. In relation to these, the role of recruitment agencies can be perceived as more critical, providing essential support to both employers and candidates as they navigate the evolving employment landscape.

At Red Rock Partnership, we are committed to helping both our clients and candidates thrive in this new era of work. By helping you stay ahead of emerging trends and understanding the broader economic context, we can provide the insights and services needed to succeed in a dynamic and competitive market. Let us help you!??

Sources used:

• KPMG and REC, UK Report on Jobs, July 2024
• Bank of England, Monetary Policy Report, August 2024
• Office for National Statistics (ONS), Labour Market Overview, July 2024