Recent figures point to a concerning trend – recruitment is on the decline across the UK, painting a picture of businesses in a holding pattern amid growing economic uncertainty.
These insights come courtesy of the Association of Professional Staffing Companies (APSCo), the leading trade body for the professional recruitment industry.
A Steep Decline in Job Vacancies
Bullhorn, a global frontrunner in staffing industry software, provided the data that revealed a significant decrease in both permanent and contract vacancies.
Specifically, between March and April, these vacancies experienced a dip of 16% and 13% respectively.
A comparison on a yearly basis also underscores this worrying trend. Job vacancies fell by 24% for permanent roles and 21% for contract positions between April 2022 and 2023.
Plummeting Placements as Recruitment Stalls
The number of placements – a key indicator of recruitment activity – also took a hit in April, dropping by 25% for both permanent and contract positions compared to March 2023.
While this could partially be attributed to the slowdown in hiring around the Easter holidays, the annual comparisons suggest a deeper issue tied to wavering business confidence.
In fact, permanent placements plummeted by nearly a third between April 2022 and the same period in 2023, with contract placements similarly falling by 27%.
However, amidst these disheartening figures, a silver lining emerges.
The data shows a modest monthly increase of 2% in average permanent salaries, hinting at a gradual rise in remuneration as the cost-of-living crisis and a shortage of highly skilled professionals continue to dominate the UK landscape.
An Economic Bellwether: The Recruitment Market
Ann Swain, APSCo’s Global CEO, shares her perspective on the current situation: “The latest figures do present a level of concern for the UK.
“The recruitment market often serves as a bellwether for the broader economic climate, making this sharp annual fall in jobs and placements an issue that all business leaders and government authorities should take note of.
“The data suggests that we have shifted from a lack of candidates to a sharp drop in requirements as business confidence falls amid economic uncertainty.
“While reports from the OBR suggest that we have narrowly avoided a recession so far, we could be heading in a different direction unless confidence in the economy is strengthened, and that needs to be underpinned by a strong labour market.”
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