Recruitment Sector Insight

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THE NUMBER OF WEEKLY JOB POSTINGS IN 2023 MORE THAN DOUBLED. Data from CIPD shows that in the first week of 2022, weekly job postings were at approximately 1,150,000. By the middle of 2023, this figure had more than doubled, sitting close to 2,350,000. Vacancies are higher than ever as the labour market continues to rise. UNEMPLOYMENT RATE IS EXPECTED TO RISE FROM 4.23% TO 5% BY THE END OF 2024. The latest data from ONS placed the unemployment rate at 4.3% in May of 2023. This is projected to rise further in the next year, with forecasts placing it between 4.5 and 6% by the end of 2024. Before the arrival of the COVID-19 pandemic, the UK had relatively low levels of unemployment, comparable with the mid-1970s. THE AVERAGE WEEKLY EARNINGS INCREASED BY 7.3% IN 2023. Incomes Data Research found that total pay, which includes bonuses, rose by 7.2% in the year to October. This was down from 8.0% in the year to September. Included in this data is a figure of 8.6% for public sector salary growth. Manufacturing also had a particularly high rate of growth, 7.7% in the year to September. This rate of salary growth has now run ahead of the inflation rate for several months. 56% OF AGENCIES CITE TALENT AS THEIR TOP CHALLENGE. Tight talent pools have been the top challenge for recruitment agencies for six of the last seven years with the pandemic being the only exception. At 56%, this figure sits 10% higher than last year, in which tight talent pools were voted as the largest problem for 46% of agencies. In response to this issue, recruitment professionals reported that they plug the gap by ‘engaging with passive candidates’ and ‘asking candidates for their preferred communication method’. WINNING NEW BUSINESS IS THE TOP PRIORITY FOR UK AGENCIES. Recruitment professionals cite new business as their number one priority, with 39% of BullHorn’s study respondents expressing an increased commitment. Also taking top priority spots was ‘talent acquisition’ and ‘digital transformation’. NEW POSITIONS TAKE AN AVERAGE OF 42 DAYS TO FILL. The Society of Human Resource Management (SHRM) reports an average time to fill of 42 days to fill positions. However, this is dependent on the industry. For example, hiring for a position in the engineering industry can take as long as 62 days. As a recruitment business, you’ll know that it’s worth the wait when you place the perfect candidate. 11% OF AGENCIES ARE USING AI AND RECRUITMENT AUTOMATION. Vervoe have found that only 11% of recruiting businesses are making use of AI screening tools and online assessments. Is this more or less than what you expected? Like many other industries, AI is increasingly helping to streamline recruitment processes, with softwares now scanning resumes and even leading interviews.

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