Is the recruitment market slowing down? What Q3 is telling us

It’s been a very changeable summer on all fronts, and we aren’t just talking about the weather! In the latest jobs report from KPMG and REC, the recruitment sector seems to be in the midst of change.

August saw the steepest decline in both permanent and temporary job placements for over three years, dipping to late 2020 levels. Many of us are keenly aware of the pressures facing the economy at present, with inflation and the cost-of-living crisis adding to uncertainty across the UK. But what does this mean for you?

The news isn’t all doom and gloom. While businesses are being more cautious in their approach to hiring, understandably to protect themselves in a tumultuous market, there is room for optimism.

There’s still a demand for roles

If you are looking for a role, the market remains in your favour in many sectors and there is a broad availability of roles available, not just here at Cathedral Appointments but across the market.

The appetite for tech and AI expertise continues to be on the rise as the tech market evolves. At our sister brand, CA Tech Talent, we are seeing more specialised tech positions becoming available as businesses look to the future.

Healthcare is also bucking the downward trend which isn’t overly surprising! There continues to be high demand for both temporary and permanent staff, increasing steadily for the last 37 months.

The accounting and financial sectors remain strong, sitting just behind hotels and catering, with the largest numbers of role availability and candidates. Clerical roles have fallen in demand slightly as the world continues to shift post-pandemic. Locally we have experienced increased interest from our clients for temporary staff with various skills to fill short-term assignments and projects.

Upskilling is essential to protect your business for the future

The widening skills gap is becoming more evident, so now could be a great time to upskill your team with some training courses and learning programs to help broaden, or hone, their knowledge on specific subjects.

For those in the digital and tech sector, there are some great courses available for your teams through Grow With Google, HubSpot or Coursera.

Identifying the stars of the future within your team, improving their skills, and developing their knowledge will in turn lead to a happier workforce and higher retention of your staff. All while planning for future success!

Let’s talk money

As for salaries, it was recently announced that UK inflation has fallen to 6.7% (BBC), with price rises slowing for the third month in a row. Could we be coming to the end of the cost-of-living crisis? We can only hope!
We are continuing to see starting salaries change in the face of inflation, with starting salaries rising on average in August. Shortages of specific candidates due to the skills gap, counteroffers and economic pressures also pushed up salaries.

What’s the impact?

Despite this apparent slowdown, the availability of candidates has increased and there are currently over 8,900 jobs to choose from on Indeed.com!

August is traditionally a slow month for many businesses as families head on holiday and take their minds for a well-deserved break away from the working world. So, we remain optimistic for the next few months ahead!

With the majority of summer holidays behind us, we have seen an increase in activity as businesses recommence their hiring plans and in certain cases get ahead of the festive season. And in the new year, we expect to see a pickup in both businesses wanting to expand and candidates looking for a fresh start for 2024.

If you’re ready to buck the trend and scale your team, or if you’re looking for a new role in a company you’ll love, we’d love to chat. Get in touch with a member of our team now.

Data source: KPMG and REC, Report on Jobs September 2023.
KPMG is a leading multinational accounting organisation that produces monthly reports and analysis on various sectors, including recruitment.
The Recruitment and Employment Confederation (REC) is a national body helping recruiters with legal advice, business support and training to drive up industry standards.