Tag: Hiring Demand

Increased demand expected to be led by emerging segments like 5G 

India’s telecommunication and allied sectors are set to witness 40-45% hiring growth by FY 2026 reports LiveMint, citing research by TeamLease Digital.

The demand is expected to be primarily led by emerging segments including 5G, virtual network operations, network security, IoT in big data, and cybersecurity specialists. Non-tech sectors such as manufacturing, smart cities, robotics, tele-medicine, health tech and drones will also see rising demand, TeamLease said.

Munira Loliwala, Business Head at TeamLease Digital commented: “On the whole, the telecom sector will employ about 6 million people by FY26, from about 4 million in FY22. She added that demand and payouts for specialised roles doubled in FY23. The sector saw flat rates of hiring and slight increases in salaries over the last several years. Certain specialised roles saw a recent spike in hiring is due to the pace of 5G rollout.

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Skills crisis not yet over, experts warn

The latest Office for National Statistics (ONS) data has revealed that UK vacancy rates declined between May and July 2022. But even with the decline, background screening and identity services firm, Sterling, has cautioned firms not to neglect hiring efforts with skills still in short supply. Data shows that neglect may be detrimental to organisations’ long-term hiring strategies.

According to Sterling, even though vacancies are down, the hiring market in the UK is still candidate-led, and the country remains critically short of top talent. In light of this, businesses need to rethink their hiring process to better match the job seeker’s needs.

Based on a global survey of more than 1,200 HR professionals and more than 3,700 recent job seekers, Sterling’s research revealed that 78% of job seekers are dropping out or considering dropping out of the recruitment process due to long, complex screening requirements. A third of the respondents who dropped out said the hiring process was too complicated, while 22% had concerns about the background screening process.

Steve Smith, President of International at Sterling, commented: “With so much uncertainty and with skills still in short supply across most of Europe, this is the time to ensure that you have the right processes in place to secure the talent that you need to continue successfully operating your business. Particularly in a competitive recruitment environment, ensuring applicants have the best possible experience with a brand remains of paramount importance and will be for the foreseeable future.

“When it comes to candidates dropping out of the hiring process, there’s been a wealth of speculation that individuals are getting counter-offers and they are pursuing opportunities elsewhere. While this may be the case for some, the insight we’ve gained from applicants themselves suggests there’s more to this issue that needs to be addressed swiftly. In the current economy, it’s simply not a viable option to overlook how important it is to provide an efficient and engaging experience for candidates throughout the entire hiring process.”

ONS labour response: Decline in jobs doesn’t mean the skills crisis is over

Tania Bowers, Global Public Policy Director at the Association of Professional Staffing Companies (APSCo) commented: “The post-pandemic hiring spike we experienced was bound to come to a halt at some time, but with recession fears looming and on-going Government uncertainty amidst a leadership contest, this drop is a concern for the country’s economy.

“Our own data supports the idea that permanent recruitment is slowing as the impact of the skills shortages over the last few years plays out. However, what our statistics are also indicating is that more businesses are turning to contract professionals as they struggle to fill resourcing needs. The data – provided by the global leader in software for the staffing industry, Bullhorn – revealed that the number of contract roles in the UK grew by 13% in July 2022 when compared to pre-pandemic figures (July 2019). In comparison, the number of permanent jobs dropped by 23% in the same period.”

“This reliance on the non-employed segment of the workforce simply isn’t sustainable at a time when the UK’s attractiveness as a destination to work for international contractors is dwindling post-Brexit. And with the impact of Off Payroll still being felt in the temporary recruitment market, the longer-term availability of these resources and ability to tap into skills in a cost-effective manner is at risk. We urgently need some stability from the Government and a clearer direction on the regulation of the employment market to ensure that the UK can manage through the difficult times ahead.”

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Recession concerns mount up 

Despite the US adding 528,000 jobs in July, The Conference Board’s Employment Trends Index saw a drop, showing signs of slower job gains ahead. The organization also showed concern about a possible recession.

July’s Employment Trends Index level of 117.63 dropped from June’s downwardly revised reading of 118.71.

It is thought that slower job gains are likely to bring the labour market in line with the rest of the economy, which Is already seeing a slowdown in activity. The Conference Board, however, expects the US unemployment rate to remain below 4.5% in 2023. It was 3.5% in July.

Frank Steemers, Senior Economist at The Conference Board, said: The Employment Trends Index declined in July and has now been on a downward trend since March 202. While the US labour market is currently still robust, the recent behaviour of the index signals that slower job gains should be expected over the next several months.”

“It is increasingly likely that the US economy will fall into recession by year end or early 2023, with the Fed expected to continue raising interest rates rapidly over the coming months.”

“While businesses are currently still struggling with severe labour shortages, they may soon see some reduced pressure in recruitment and retention difficulties as economic activity cools.”

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CPI remains static

Although the previous week’s level was revised downward by 12,000, jobless claims increased by 14,000 last week. With this increase, the jobless claims level is now 262,000, according to the latest US Department of Labor reports.

According to a Reuters poll, economists forecast 263,000 applications for the latest week.

Other stats show that the four-week moving average of claims increased by 4,500 in the week ended Aug. 6 to 252,000. The previous week’s average, however, was revised downward by 7,250.

In related news, The US Bureau of Labor Statistics reported that the consumer price index for urban consumers was unchanged in July compared to the previous month. However, year on year, the index increased by 8.5% in July, this number down from 9.1% in June.

While the cooling of headline inflation is welcome at the Federal Reserve, economists warn that the Fed wants to see more months like this and that officials are also focusing on core prices, according to Market Watch.

Sal Guatieri, Senior Economist at BMO Capital Markets, commented: “The July CPI report might be the first clear indication that consumers are pushing back against high inflation in response to tighter monetary policy. It’s a sign that inflation is close to peaking, though the climb down the mountain will be slow due to rising wages and rents.”

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London remains a hiring hotspot

The Recruitment & Employment Confederation (REC)’s latest Labour Market Tracker has revealed that in the last week of July, the number of active job adverts in the UK hit a new record high for this year at 1.85 million

The number of new job adverts posted each week has been relatively stable during late June and July, at between 180,000 and 200,000 per week. However, in the last week of July, 182,000 new postings were recorded. This is 22% below this year’s highest figure of 234,000 new postings recorded at the beginning of March.

The increase in active postings indicated that job adverts are being left open for longer as employers across the country still struggle to attract candidates for their vacancies. Clearly, despite labour shortages, rising inflation, and energy costs, there is no sign that the jobs market is shrinking.

In terms of the types of jobs advertised, there was an increase in adverts in the last week in July for:

  • actors and entertainers (+13.0%)
  • driving instructors (+12.4%)
  • dancers (+11.1%)
  • water and waste (+9.5%)

Probation officers saw the biggest weekly decline in active job adverts at -10.4%). The health and social care sector also showed notable decreases:

  • hospital porters (-8.3%)
  • childminders (-6.6%)
  • paramedics (-5.3%)

London saw an increase in job postings in the week of 25-31 July –  three of the top ten hiring hotspots in the capital city. The local area with the highest increase in job adverts was Newry, Mourne, and Down in Northern Ireland (+8.3%), followed by Haringey and Islington (+7.1%) and Chorley and West Lancashire (+7.0%).

At the bottom end of the scale, five out of the bottom ten local areas for growth in active job postings were in Scotland. Moray (-9.8%), Orkney Islands (-6.6%), and Highland (-5.1%) saw the biggest drops.

Kate Shoesmith, Deputy CEO of the REC, said: “This new data shows the continued strength of the jobs market, despite any wider economic uncertainty. The number of job adverts being posted each week is stable. It’s a great time to be looking for work as a jobseeker, as employers are having to think more about the pay, benefits, conditions and development opportunities they offer both new starters and current staff as they compete for talent.

“There is a danger that with costs soaring, employers will have to reprioritise – as there is still no viable support package for businesses to meet these rising costs. We know that employers’ confidence in the broader economy has started to drop. Government must play its role, both in supporting people and businesses through the current crisis, and also by working with industry to create a sustainable labour market. We need a long-term workforce strategy that encompasses skills, immigration and makes childcare and local transport part of the infrastructure of our labour market.”

John Gray, Vice President, UK Operations at Lightcast, said: “Whilst the economic headlines appear to be very gloomy at the moment, with the Bank of England forecasting inflation of more than 13% and a contraction in GDP until the end of 2023, this bleak picture does not appear to have dented employer hiring activity as yet. Not only have we just seen another 180,000 new job postings being placed in the last week of July, but the total number of active job postings is now at a record high of more than 1.8 million.

“This situation of a contracting economy, high inflation, yet employer hiring activity hitting record highs, is highly unusual. Whilst we are likely to see a slowdown in hiring activity, the big questions hovering over the labour market in the coming months are how significant this slowdown will be, and whether we will also start to see employers laying off staff. So far we are not seeing any signs of either, and the labour market remains surprisingly tight given the adverse economic circumstances we are hearing about.”

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Three out of four companies struggling to hire

The British Chambers of Commerce Quarterly Recruitment Outlook has revealed that three out of four companies struggle to hire staff.

According to the report, 61% of firms were recruiting in the second quarter. This number is slightly higher than the 60% recruiting in the first quarter. However, of these companies, 76% reported difficulties in finding staff.

The report canvassed 5,700 businesses and found that the construction sector struggled the most (83%). The production (79%), manufacturing (79%), and hospitality industries (78%) followed.

With rising business costs, only 28% of firms have increased their investment in the last three months, with smaller firms being even less likely to report an increase, at just 19%.

Jane Gratton, BCC Head of Policy, said: “Businesses remain under huge pressure to fill jobs, but record levels of recruitment difficulty are showing no signs of improvement.

“Solutions are urgently needed so that firms can keep their doors open throughout these tough times.

“We have written to the government outlining a three-point plan on how they can work with businesses to solve this.

“Firms must be encouraged to find new ways of unlocking pools of talent – by investing more in training their workforce, adopting more flexible working practices, and expanding use of apprenticeships.”

Marcus Beaver, UKI Country Leader at Alight Solutions, commented: “In today’s work environment, the employee experience is critical. If organisations want to hire more people, they must prioritise it during the recruitment process. Attract employees by offering a good work culture with a clear line for career progression. Employees hold the power to make or break companies, and employers must remember this if recruitment issues are to be overcome.”

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Hiring spike in May, latest data reveals

According to the latest statistics from the Association of Professional Staffing Companies (APSCo), jobs spiked again in May despite the ever-increasing skills shortages.

This data, together with the Organisation for Economic Co-operation and Development (OECD) suggesting that the economy will stagnate, has raised further concerns for the UK’s economic growth.

The data provided by Bullhorn showed that contractor jobs increased by 34% between May 2021 and May 2022. Permanent roles also showed an increase of 25%, year on year. Looking at month-on-month comparisons, job numbers for permanent roles increased by 16% between April and May 2022. Contract roles were up by 19% during the same period.

The data also showed a 44% increase in the number of permanent placements in May 2022, compared to the same month last year.

As resources continue to dwindle in the UK, the Office for National Statistics (ONS) has revealed that there are now more jobs than unemployed people.

Ann Swain, CEO of APSCo, commented: “The UK’s labour market is reaching breaking point and this latest data suggests hiring demand is unlikely to slow anytime soon, which is a concern given the latest OECD forecast. In recent months we’ve seen record breaking vacancy numbers reported by the ONS and the first ever instance where there are more jobs than people out of work. In a post-Brexit and Covid-hit economy, the strength of the labour market will be paramount to the UK’s ability to become and remain a global powerhouse. If this is to be achieved, the country’s policy makers need to implement an international approach and bolster global opportunities. This includes creating an attractive entry route into the country for highly skilled self-employed professionals and refocusing international trade deals on skills, the workforce and the mutual recognition of services and professional qualifications as well as tariffs and goods.”

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