Recruitment Outlook Report – June 2023

The labour market in the UK continues to face uncertainty, leading to hesitation in hiring decisions by companies. But it’s far from doom and gloom, especially in the North of England.

This report provides an overview of the current trends and insights into the recruitment landscape drawn from the latest KPMG/REC Report on Jobs. Drawing on data from recruitment consultancies and employers, it offers valuable information on the state of the labour market in June.

Staff recruitment held back by economic uncertainty

In June, companies showed reluctance in taking on additional staff due to lingering uncertainty over the economic outlook. The data reveals a solid decline in permanent staff appointments, although at a slower pace compared to the previous month. Temporary jobs growth picked up slightly but remained modest overall. These hiring decisions reflect wider economic concerns that lead employers to prefer temporary workers while delaying permanent hiring decisions.

However, the North of England stood out against the wider English trend for both permanent and temporary jobs. Indeed, the North registered the first upturn on permanent jobs since February. This was then mirrored in less demand for temps, as we would expect.

Employers benefit from better candidate supply

For a sustained period, employers have faced challenges with low levels of candidate supply. However, June showed three consecutive months of increases in candidate supply meaning employers have slightly bigger pools of candidates to work with. The rate of expansion was the sharpest seen in almost two years and applied to both permanent and temporary staff. Redundancies and growing confidence among candidates seeking better-paying roles contributed to this emerging trend. With growing candidate supply, both permanent and temporary roles can benefit.

Starting pay increases but at a slower rate

In response to inflation and the rising cost of living, starting pay for both permanent and temporary positions continued to rise. However, the rate of increase softened slightly in June, although it remained consistent. This trend has been particularly prominent in the North of England, where starting pay growth has been notable.

Vacancies increase but at a slower pace

Demand for staff continues to grow, albeit at a slower pace for the fourth consecutive month. The increase in vacancies varies across sectors, and opportunities remain for candidates to find choice when seeking new roles. According to the Office for National Statistics, there are currently 1,051,000 open vacancies in the UK, still well surpassing the pre-pandemic level of 826,000, even though the numbers are now dropping.

Resilience and strength in the UK jobs market

Despite ongoing economic uncertainties, the UK jobs market displays resilience and strength. Positive employer and business confidence contribute to a continued reliance on recruitment to drive success. The

“reasonably resilient”

market, as Claire Warnes, Partner, Skills and Productivity at KPMG UK says, is what will help us travel through these harder economic times with confidence.

As skill shortages, employment regulations, and a tight labour market persist, employers should seek the support of excellent recruiters to navigate these challenges successfully.

At First Executive Recruitment, we stand ready to assist businesses in sourcing exceptional talent. We are dedicated to helping your business thrive by connecting you with the right candidates. Get in touch for more support with your recruitment and talent management.

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.

Follow us on?LinkedIn,?Twitter?and?Facebook?for regular articles, reports, videos, guidance and support relating to recruitment for businesses and individuals.

#ReportonJobs?#REC?#jobsoutlook?#businessleaders ?#firstexecutive