Job Market Forecast: Cloudy With Some Sun

November 2023

In the ever-evolving landscape of the UK job market, the trend towards temporary roles over permanent positions persists. It's a shift that has brought about a notable surge in job seekers. Now, one might assume that this is good news for recruitment agencies and employers, but the reality is a bit more complex, especially in sectors like new build housing, where output remains subdued, even compared to the post-Covid period.

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Data gathered in the latest UK Jobs Report, jointly compiled by the REC and KPMG, paints a telling picture. October saw yet another increase in the number of temporary roles and marks the 13th consecutive month of decline in permanent staff placements across the nation. This trend can be attributed to the ongoing economic uncertainty and a growing preference among employers for workforce flexibility.

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However, it's crucial to note that the demand for temporary work is not uniform across all sectors. While the healthcare industry is witnessing an upturn in job opportunities, the construction market is experiencing a slowdown and a decrease in new residential developments.

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Statistics from the NHBC reveal that new home registrations have plummeted by over 50% compared to the same period in 2022. In the three months leading up to September 2023, private sector home registrations were down by a staggering 57% year-on-year, with rental and affordable registrations declining by 43%.

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This overall sluggishness in the construction sector is leading many employers, both in the private and public sectors, to consider restructuring or downsizing their workforce. The upshot of this is an increase of candidates seeking employment or keeping an open mind about moving to a new employer.

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The current situation offers a golden opportunity for employers to access a wealth of outstanding candidates not only from direct competitors but also talented individuals from other sectors. In this evolving landscape, organisations that strategically position themselves to harness the current market conditions will not only weather the storm but also emerge stronger, ready to harness the benefits of an improving economic climate.

For more insights, you can refer to:

The latest UK Jobs Report by the REC and KPMG: [https://www.rec.uk.com/our-view/news/press-releases/report-jobs-caution-around-permanent-staff-hiring-persists-october-amid-economic-uncertainty]

NHBC Statistic: [https://www.nhbc.co.uk/media-centre/statistics/2023/11/08/house-building-drops-to-lowest-levels-since-covid-as-challenging-economic-conditions-persist]

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