London has the highest hiring demand despite increased cost of living
The latest ManpowerGroup Employment Outlook Survey has found that employers in the UK plan to increase headcount massively in the third quarter of this year. Based on responses from 2,030 UK employers, the survey looks at intentions for increasing, maintaining, or reducing workforce numbers in the next quarter.
Despite aggressively recruiting in the months post-pandemic, businesses are still struggling to fill vacancies.
According to the survey, UK’s employment outlook has tripled in the last 12 months. The Q3 outlook has reached a new high of +35%. This is a 22%-point increase from the third quarter of 2021.
The survey found that:
- Banking, finance, insurance, and property are at the top of the list, increasing by 14% since the last quarter to +49%
- London employers are also the most optimistic, increasing 10% in hiring confidence, moving up to +41%
- The IT and technology industries are similarly committed to recruitment, increasing by 7% to +49% in the next three months
- Manufacturing employers are also high on the list – the hiring intent is up by 27% to +38%
- The hospitality sector was down by 9% to +25%.
Chris Gray, UK Director at ManpowerGroup, says: “These record hiring plans demonstrate the continuation of an employment trend, which sees businesses keeping their feet firmly on the gas, despite the familiar challenges with the UK labour market. Despite a shrinking workforce and with a large proportion of inactive workers, employers are still keen to recruit fresh talent to help them deliver their services, and to surf the wave of growth for as long as possible.
“We are seeing an active labour force confident enough to switch employers in the search for higher salaries, across both permanent and temporary categories. This is being driven by the rising cost of living and the need to chase higher wages to combat a dwindling disposable income. Demand for staff still outstrips supply, so the choice for candidates remains plentiful.
“On the other hand, we are seeing businesses work hard to bring in new talent but struggling to retain existing employees. Companies find themselves caught between a rock and hard place, in an effort to strike a balance between hiring new talent and being mindful of the needs and pressures felt by their existing employees.”