The Moston Monthly

Welcome to the August edition of Moston Monthly Insights, your trusted source for the latest trends and perspectives in recruitment.

UK Job Market Trends

August 2024 has brought promising developments in the UK job market. Notably, we've observed significant growth in the engineering sector, with demand for skilled professionals on the rise. This sector's resilience is a strong indicator of ongoing recovery and expansion in critical areas of the economy. Internally, we’re also seeing a substantial increase in demand across various industries, reflecting a positive outlook as businesses continue to rebuild and innovate.

Pay Dynamics

Advertised pay rates for new hires in lower-paid sectors such as security, retail, and customer service have seen significant increases, driven by ongoing recruitment challenges and the previous rise in the minimum wage. However, overall wage growth has moderated slightly, reflecting the broader economic pressures on businesses.

Employer Confidence

Employer confidence is continuing to increase as of August 2024, with significant signs of improvement. The latest Quarterly Recruitment Outlook reveals that hiring difficulties are beginning to ease, with a notable decrease in the number of firms reporting challenges. This positive shift indicates that businesses are adapting to the current economic environment and finding new ways to overcome obstacles. Even in sectors like production and manufacturing, where challenges persist, there is a growing sense of optimism as companies continue to navigate and respond to the evolving market conditions.

Key Economic Indicators

• Unemployment: The UK unemployment rate remains stable at 4.2%, though concerns over potential increases persist due to ongoing economic challenges.
• GDP: The UK's GDP growth forecast has been revised upwards to 0.9% for 2024, reflecting better-than-expected economic performance in the first half of the year.
• Inflation: Inflation is currently aligned with the Bank of England’s target of 2%, though core inflation and price pressures in the services sector remain higher, which may influence future monetary policy.

Regional and Sector-Specific Developments

In August 2024, regional recruitment trends have shown significant variation. London has reported an increase in permanent placements for the first time in nearly two years, while other regions, particularly the South of England, have continued to experience declines. Demand for temporary staff remains robust, with the North of England seeing the strongest growth in temporary pay rates.

Labour Market Insight

The Labour government's recent employment law reforms introduced in August 2024 are poised to significantly impact the recruitment landscape. Key reforms include the banning of exploitative zero-hour contracts and enhanced protections for gig economy workers. Additionally, businesses must prepare for the gradual increase in the minimum wage to ￡12 per hour by 2026, which will require careful financial planning and strategic adjustments.

Looking Ahead

As we move through September 2024, businesses must remain adaptable and informed. The recent government changes, coupled with ongoing economic uncertainties, demand a proactive approach to recruitment and compliance. Employers should focus on strengthening their employer branding, maintaining pay transparency, and staying abreast of legal developments to effectively attract and retain top talent in a competitive market.

From Moston HQ