The demand for staff is a recurring factor that is often changing within the world of recruitment and employment; but these latest statistics are more startling than usual.
The figures essentially state that change may be on the horizon in the vast job market universe, as the recent news could result in implications for both candidates and recruiters.
Where Have All The Workers Gone?
In an online report published last week by the Recruitment and Employment Confederation, it’s clear to see that there are stark correlations between the demand in vacancies and the decline in unemployment. For some companies however, finding the positives in this might prove to be a bit of a challenge due to the fact that the availability of candidates is in the midst of a three-year decline.
However, what this ultimately means is; more people are being employed and remaining in their desired roles – which can only be good news, right?
In the report, we can see tremendous growth in both permanent placements and temporary billings, meaning that overall unemployment in the UK is at an all-time low. The increased number of job vacancies have contributed to the fastest expansion in the number of people placed in permanent roles for more than two years, as firms are in a rush to snap up the best staff whilst they’re still available.
The report also revealed that the current demand for staff across the UK has reached a 21-month peak. But is this good news or bad news for recruiters?
Pros And Cons
Temporary billings are also rising at a much steeper pace, making this the strongest rate of growth since March 2015. However, the talent pool for available temporary staff is on the up too, as more people are breaking into the contractor industry or building their own limited companies. Therefore, if you’re a recruiter who deals solely in contracting, you’re likely to be in for a good year.
There’s no sugar coating the fact that the demand for staff has massively risen, which may cause serious concerns for recruitment companies and businesses who aren’t getting the candidates they need. But like most things in life; with the bad, comes the good – and any recruitment company worth their salt will use these recent circumstances to their advantage.
Whilst clients are on the lookout for employees left, right and centre, recruiters can busy themselves with finding the best candidates for their needs; which is – after all – their job. Although candidate availability has technically dropped, it’s up to the recruiter to source those looking for new roles or for a first-time position in a job.
The report also signals promising improvements for candidates.
Secondly, candidates are now being given many more options when it comes to their employment. The data from May indicates greater demand for permanent and short-term staff within the public sector. Meanwhile, the number of permanent job vacancies increased for the first time in three months at a solid pace. Therefore, candidates looking for a job have got more opportunities than ever in a variety of industries and sectors. Not to mention the fact that there’s considerably less competition standing between you and your perfect job now too.
Understandably, this report does indicate that there are challenges ahead in terms of general employment across the UK. But it isn’t easy to tell what is specifically causing the issues or how they can be rectified. The Brexit negotiations are on-going and Britain’s detachment from the European Union has meant that we’ve lost a lot of foreign workers up to this point.
Tom Hadley, REC’s Director of Policy, backed up this sentiment after the release of the report. He said: “The challenges facing the next government are stark. Demand for staff is the strongest in almost two years, but the number of people available to take those jobs has plummeted.
“Official data shows unemployment has dropped to the lowest level since 1975, and EU citizens are leaving the UK in droves. Employers seeking to fill vacancies are running out of options.
“Skill shortages are causing headaches in many sectors. Meanwhile, the shortage of people with cyber security skills is a particular concern in many businesses in the wake of the recent high-profile attacks.
(Quotes originally published on REC website)