Tag: Job Market

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.”

Share this article on social media

Employment trends index shows slowdown in positive job growth

Following the US Bureau of Labor Statistics’ monthly employment bulletin report, the Conference Board Employment Trends Index was released on 6 June 2022. The employment index indicated a slowdown in job growth in the months ahead.

Despite job growth remaining positive, the measure moved downward from a reading of 120.60 in April to 119.77 in May.

Sectors involving leisure and hospitality as well as in-person services have not yet completely recovered from their Covid-linked job losses. However, with consumers likely to move from spending on goods to services, these industries will likely see some employment growth.

Agron Nicaj, Associate Economist at The Conference Board, commented: “The labor market may have less room for more growth with overall employment down only 0.5% compared to the pre-pandemic level.”

“The labor market remains strong amid high inflation, and the Federal Reserve is likely to continue its focus on stabilizing prices as a result,” but “a strong response by the Fed risks higher unemployment rates by the end of 2022.”

Share this article on social media

Job market appears to be slowing down as we head deeper into 2022

Recent data from Broadbean Technology indicates that job numbers are beginning to slow following the spike in vacancies during the first quarter of this year.

Vacancy figures were down 55% between March and April 2022, and the data also suggested that job application numbers continue to decline. The statistics suggest that the lack of resources agrees the UK is impacting job market growth.

Further information from Broadbean also shows a 37% decline in the number of vacancies year-on-year between April 2021 and April 2022. This could be due to the hiring spike reported last year when UK businesses prepared for Freedom Day in 2021. Similarly, applications decreased by 75% month-on-month and 75% year-on-year.

Looking at the data by sector, the following industries saw significant drops in applications

  • Application numbers in the IT sector fell 72% between March and April of this year
  • The logistics sector saw a drop of 77%
  • Building & construction were down 75%

With talent shortages reported across all three of these sectors, these numbers come as no surprise.

Alex Fourlis, Managing Director at Broadbean Technology, commented: “The UK’s skills crisis is continuing to be a focal issue, and for good reason as our data shows that these shortages are impacting almost every business, across every sector. While the sudden rise in recruitment activity received a warm welcome at the beginning of 2021, we are beginning to see signs of vacancy numbers slowing down over a year later. Given the dearth of available resources, there’s a high chance that this drop in new vacancies is simply a sign that businesses cannot fill roles they’ve had open for some time and are unlikely to add any more roles if they cannot meet the current operational needs.”

“For employers and recruiters, now is a critical time. Businesses need to rebuild and nurture dwindling talent pools, utilise innovative technology and maximise partnerships with external talent suppliers in order to find the resources that are needed. Difficult times are ahead for the UK economy, and we need a recruitment market that can best support economic growth.”

Share this article on social media

35% of under 30s looking for new roles 

CareerWallet a recruitment and employment technology company has published a national employee survey that has revealed new trends and insights into the UK job market. The report has highlighted the huge impact the steep rise in the cost of living has had on the job market with over a quarter (26%) of employees looking for a new role and 13% already requesting pay rises to ensure their current role covers additional costs. 

The survey showed that a further 12% of all employees are considering asking for a pay rise in the next few months with only 25% of all employees not considering changing roles or asking for a pay rise due to increased costs in the UK. Out of the employees surveyed the under 30s have been most impacted with 35% currently looking for a new role and the North East is the region most effected with 40% of all employees in the process of changing roles. 

The survey showed how many employees are being impacted directly by the increased cost of living and further highlights to employers that current salaries and any pay rises need to cover these costs to ensure they keep hold of their staff and prevent them from looking for other opportunities. 

Craig Bines, CEO at The CareerWallet Group, commented: “The survey has highlighted how UK employees are already being impacted by the rise in the cost of living and are actively looking to counter this by pursuing a new role or a pay increase and it is important that all employers are aware of this and act quickly to keep their talented people in their businesses.” 

Share this article on social media

November 2021 saw five times more applications than the previous year 

A national job vacancy survey by CareerWallet has revealed detailed trends and insights into the UK job market. The report has highlighted the huge impact the pandemic has had on the recruitment sector in 2020 as job applications in the last quarter of 2021 were more than three times (369%) higher than the same time last year. 

According to the findings, the massive increase in applications is due to a renewed confidence in the job market and a backlog of employees who stuck out less than perfect roles due to furlough schemes or fears of leaving their roles in the midst of the pandemic. The report revealed that November 2021 was a record month for applications with almost five times as many applications as November 2020 with the surge continuing in December with over three times the applications during the festive period compared to last year. 

The report shows how the market has shifted over the last 12 months as jobseekers are less fearful of the economic impacts of the pandemic. 

Craig Bines, CEO at The CareerWallet Group, commented: “Our national report has highlighted how employees are returning to the job market in their millions across the UK and this number seems to be continuing to rise month on month. The skill shortage issues have been well-documented and as economic fears from the pandemic subside it is now clear that employees are becoming aware of the abundance of new potential jobs available to them.” 

Share this article on social media

UK region in every sector outstrips job postings for 2020

The latest reports from Reed.co.uk, have stated that over 3.3 million jobs were added onto its website in 2021 – that’s a whopping 1.5 million more than 2020 which equates to a year-on-year rise of 97%!

Reed.co.uk also reported a 25% increase in new jobs posted last year compared with 2019, when 2.7 million jobs were recorded before the start of the pandemic.

September saw the most amounts of job postings with 357,489 created which was an increase of 150% compared to 2020 and 60% compared to 2019.

Similarly in December which is month where job postings usually fall in the lead up to the holidays and new year recorded nearly  350,000 new live vacancies. December was the second most active month of 2021 and a 151% and 132% increase on 2020 and 2019’s figures respectively.

Job postings in every sector on Reed.co.uk were up year-on-year compared to 2020, with Customer Service (510%) and Transport & Logistics (337%) seeing the highest percentage increases, followed by Banking (305%), Strategy & Consultancy (255%), Hospitality & Catering (176%), Retail (170%) and Manufacturing (136%).

In terms of the number of new jobs created, Transport & Logistics was the most active sector in 2021 with 376,000 jobs posted, followed by Customer Service (338,954), IT & Telecoms (264,184), Education (256,301) and Health & Medicine (168,558).

Further evidence of a jobs boom was reported by Reed.co.uk through its regional analysis of job vacancies on the site. Every region across the UK saw job vacancies for last year outstrip 2020 and nearly all saw more jobs added than before the pandemic. South East England and London were the most active regions for job postings with both seeing over half a million new vacancies added last year, a 77% and 108% increase year-on-year, respectively.

Recent analysis of Reed.co.uk’s jobs data also suggests that the ongoing jobs boom will continue into 2022, with over 32,000 jobs live on the site in 24-hours on the first Tuesday of the new year – a new record.

James Reed, chairman of Reed Recruitment commented: “As we move into 2022, the momentum which has built up in the jobs market is showing no signs of slowing down either. It is now the best time in fifty years to look for a new job. In this newly established sellers’ market, jobseekers hold all the cards and should feel empowered to find new opportunities whether to explore different industries, improve work-life balance, increase wages or boost career prospects. I urge anyone thinking of switching career to explore the opportunities available to them.”

Share this article on social media

3 in 5 UK professionals are unhappy with their current salary 

CV Library’s latest survey has revealed that a staggering 61% of professionals are unhappy with their salary, with the 1,500 surveyed professionals showing that lawyers, teachers and new graduates were the most unhappy with their current salary packages.

Despite this, the majority (54.6%) of respondents stated they had never tried to negotiate for a higher salary.

Results demonstrated that the reason respondents hadn’t negotiated a higher salary was that 51% feared it would risk losing their job, while 40% replied that they didn’t want to be seen as too pushy and finally 31% saying they didn’t know how to negotiate.

The pandemic appears to have worsened the issue as 29% of respondents said they were even less likely to ask for more money in 2021 than they were before the arrival of COVID-19. However, the landscape has change with record numbers of job postings in the last six months and confidence among the UK workforce has grown as we enter into 2022.

According to CV Library, the salary shift is already reflecting in the 2022 job market with average salaries on the rise in 16 sectors in January 2022 so far, compared to January 2021. The top 5 sectors with salary increases are:

  1. Hospitality/hotel +65.8%
  2. Marketing +12%
  3. IT +11.6%
  4. Administration +10.3%
  5. Management +9.4%

Lee Biggins, CEO and founder of CV-Library comments: “When the pandemic first struck, businesses held all the power and competition for top jobs was tougher than ever. However, in the last few months we have seen this power shift back in favour of candidates and the year-on-year salary increases we are seeing across many industries already in 2022, substantiates this. As such, candidates should feel able to negotiate on salary without fear of losing out on an exciting opportunity.”

Biggins continued: “The key to negotiation is to be prepared. Be sure that you know what you’re worth and what you can bring to the business that will justify a higher salary. To successfully negotiate a salary increase, it’s vital that you take the time to think about what you want, and you check out the latest salaries on offer for your specific role. This will give you the supporting evidence that your expectations are realistic for the 2022 job market.”

Share this article on social media

66% of senior leadership encouraged by burgeoning economy

According to specialist recruiter Robert Half, there is no better time to secure a new job with businesses growing in confidence and recruiting for new and vacant positions.

According to their 2022 Salary Guide, the improvement in the UK’s economic climate has boosted the confidence of top-tier leaders with 66% feeling ‘somewhat more’ encouraged about growth prospects over the next 12 months.

The job market is heavily in favour of candidates who now command higher salaries, benefits and working conditions that align with their desired lifestyle. This is proving difficult for employers who need to fill roles created by the post-pandemic working economy.

With this new-found power in a buoyant job market, candidates are free to consider their job options with more than a quarter (28%) of employees likely to look for a new job in 2022 –  and many are already searching.

 Working from home affects salary potential

Increased activity in the permanent recruitment space is expected in 2022 as 31% of businesses move to fill  roles. There is higher demand for talent with hybrid skill sets and digital skills that ensure businesses can keep up with the pace of transformation and automation.

In most sectors covered by the report, salaries are expected to remain static and 25% of employers say they have no plans for increases in the near future. However, with fierce competition in the market, intentions may not match reality, and increases in average monthly salaries show the strength of candidates’ influence when agreeing terms with a new employer.

Location of candidates still matters to employers when hiring for a remote post despite the rise in remote and hybrid working over the past year. Nearly half (47%) of employers believe where the candidate is based could limit salaries for those opting to work far away the office location.

Matt Weston, UK Managing Director at Robert Half, said: “While businesses may not intend to increase the salaries on offer, the booming jobs market means they may need to re-evaluate. With candidates holding multiple offers now, we’re finding that a competitive salary alone is not enough; businesses must review the benefits on offer and promote their values to set themselves apart.”

Rethink benefits to retain talent 

To gain that competitive edge, employers are balancing stable salaries by enhancing benefits packages. For example, more than three in five (62%) employers are now offering bonuses above or in line with pre-pandemic levels to counter stagnant salaries. Nearly half (45%) now offer remote working as standard, which is what candidates expect now.

One in five (20%) employees say they would consider leaving their current role if they weren’t offered their desired working arrangements. In such a candidate-driven market it’s imperative that employers meet these needs to retain talent.

Matt Weston continued: “We’re currently seeing demand above and beyond pre-pandemic levels, and despite the so-called ‘Great Resignation’ creating a tsunami of turnover, we are still experiencing a saturated market where the demand for skilled talent outstrips the supply.”

Share this article on social media

The UK looks set to avoid the mass unemployment predicted at the outset of the pandemic if the latest Office for National Statistics (ONS) figures are anything to go by.

While employment had generally been falling and unemployment rising since the onset of the crisis, the situation was reversed in the first quarter of this year, with the ONS describing the jobs market as showing “some early signs of recovery”.

The employment rate was up on the previous quarter, rising to 75.2%, while the unemployment rate fell over the same period to 4.8%.

HMRC figures were also indicative of a recovery under way, with the number of payrolled employees rising by 97,000 in April, marking the fifth consecutive monthly rise. However, it’s worth noting that this total is still 772,000 lower than the pre-Covid-19 level.

In response to the figures, Neil Carberry, Chief Executive of the Recruitment and Employment Confederation (REC), said: “Today’s figures show the labour market remained very resilient during the latest lockdown, and even show the beginnings of the recovery in hiring that business surveys are suggesting.

“The fact that the number of payrolled employees increased during January-March alongside the headline employment rate is also a positive sign. With the announcement of lockdown easing in February and restrictions starting to lift in March, business confidence has grown, and we can see that in the growing number of job vacancies – especially in sectors like hospitality.”

Employer optimism at eight-year high

This positive sentiment was backed up by the CIPD/Adecco Labour Market Outlook for spring 2021.

This survey of 1,000 employers found that optimism about hiring among employers had risen to the highest level for eight years.

The report also noted that employers across all three major sectors – private, voluntary and public – were all planning to add more jobs than they cut, and that the buoyancy even extended to hard-hit sectors such as hospitality and retail.

Only 12% of employers were planning redundancies in the next three months, taking this measure below the pre-pandemic level of 16% for the first time since the crisis began.

There was also good news for employees on pay, with basic pay expectations set to increase from 1% to 2% in the next 12 months.

However, Gerwyn Davies, Senior Labour Market Adviser at the CIPD, said employers needed to consider more than just pay when hiring.

“More jobs and improved pay prospects should give us all reason to cheer, but a solid jobs recovery must be focused on better jobs, not just more jobs,” he said. “To offset the emerging threat of recruitment difficulties, employers should be reviewing not just their recruitment practices, but also the quality of work they offer – such as employment conditions, the possibility of promotion, training opportunities and the right balance of flexibility and security. There’s more to good work than raising wages.”

Recruitment difficulties ahead?

This idea that employers will need to work hard to attract workers was something Pertemps chairperson Carmen Watson also picked up on as the company released the CBI/Pertemps Labour Market Update.

“There is still a reluctance from employees to seek new roles as they remain concerned over job security. Recruitment firms will play a key role in engaging and securing key talent for organisations,” she said.

Tania Bowers, Legal Counsel and Head of Public Policy at the Association of Professional Staffing Companies (APSCo), added that the government also had a role to play in helping the jobs market recover: “In order to continue on this positive trajectory, working practices and employment law need to be fit for the modern world. How businesses are run and how recruitment is managed is different in a remote working environment and it’s critical that the relevant authorities are providing the necessary support that organisations currently need.

“The recent delay to a return to in-person Right to Work checks is one move that APSCo has welcomed – though we are urging the Home Office to prioritise the adoption of technology to switch to digital checks.”

Photo courtesy of Canva.com

Share this article on social media