Recruitment Outlook Report – April 2024

The KPMG and REC Report on Jobs for April 2024 underscores a nuanced stabilisation in the UK recruitment landscape. This will likely be welcomed from many quarters. The last month saw a modest deceleration in the decline of people being placed in permanent and temporary roles. However, what’s worthy of note is that the indices indicate the slowest pace of reduction that we’ve seen in recent months. This relative steadiness suggests emerging opportunities amid ongoing economic recalibrations.

Stabilizing rates of people being placed in new jobs

April saw a continuation of the downturn in recruitment activity, albeit at a softer pace than previous months. The permanent placements index rose to a ten-month high, hinting at a slowing contraction rate. This is a broad indicator that the market is stabilising, offering hope to many. As is the typical picture during times of uncertainty, the numbers being placed in temporary jobs were more robust than in permanent jobs. This indicates a strategic adjustment by firms hedging against uncertain market conditions.

Sectoral variance in demand

Recruitment trends varied significantly across sectors. Engineering and IT continue to show resilience with moderate demand, contrasting with more pronounced declines in sectors like retail and hospitality. This demonstrates the importance of understanding the unique landscape of your industry.

Regional discrepancies

The north of England exhibited a slightly more robust recruitment market compared to the south, which experienced steeper declines in staffing levels. This is a pattern that’s been evident throughout the last few months. Again, this shows why it’s vital to understand the unique nature of your sector in your area.

Salary dynamics continue to put pressure on hiring managers

Despite ongoing economic uncertainties, starting salaries for both permanent and temporary positions increased. This is still being driven by competitive pressures as well as the recent uptick in the national minimum wage. The rate of salary growth for permanent positions reached a year-to-date high, although still below historical trends. As the wider economy settles in the face of steadier interest rates and inflation continues to nudge downward, starting salary inflation should continue to ease.

Candidate availability continues an upward trend

April marked a notable increase in candidate availability, reaching the highest rate of growth in five months. This surge is primarily attributed to higher redundancy levels and an uptick in job-seeking activity.

Given the increasing candidate availability and the easing of pay growth, companies have some potentially excellent opportunities ahead of them. Where possible, businesses should consider strategic hiring to leverage the growing talent pool, ensuring readiness as economic conditions improve. Now is the time to snap up talent that would otherwise be difficult to find. The companies that thrive in the months to come will be those that identify strategic decisions to fuel growth through talent.

As we navigate through the uncertainty of the next few months, particularly awaiting the stability that will come following the anticipated General Election, the insights provided by the latest data suggest a cautious optimism. The sector-specific resilience and the slight easing in hiring decisions across most regions could bring a more stable phase, potentially leading to renewed growth in the latter half of the year.

By staying informed and adaptable, leveraging sector-specific insights, and engaging with emerging talent pools, businesses are well-positioned to capitalise on the evolving opportunities in the UK job market.

Our commitment remains to support your recruitment and growth ambitions through these changing times. Please do get in touch to discuss the specific opportunities available to your business. Call us on 0161 359 3111.

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We publish an overview of the REC/KPMG Jobs Outlook Report each month to keep you up to date with the UK recruitment and jobs market month by month.

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