WHAT ARE WE SEEING?
29% of businesses anticipate an increase in their recruitment budget
49% who attempted to recruit had difficulties attracting suitable candidates
July and August have been record months for hiring in the North West
THE TALENT SHORTAGE CONTINUES
The UK is experiencing the highest level of labour mismatch in history and this is due to a number of reasons such as
We’ve also seen record levels of pay increases and counteroffers in both IT and Engineering markets. Permanent starters’ salaries and temp wages both rose at the sharpest rates in 24 years of data collection and a quarter of organisations report it’s more difficult to recruit staff as a result of Brexit. 30% of organisations say that talent is more difficult to retain compared with a year ago.
HIRING REQUIREMENTS REMAIN HIGH
Across the UK, the North of England saw the steepest increase in permanent staff appointments in September. The proportion of employers planning to recruit in the three months to September 2021 has risen again to 69% and the number of job vacancies in July to September 2021 was a record high of 1,102,000.
The North West accounts for 9.4% of national vacancies, up from 8.7% last year with July and August proving to be record months for hiring in the North West, with activity in August up 133% year-on-year.
The North of England also saw the steepest rise in temp billings.
The net employment balance measures the difference between the proportion of employers that expect recruitment and redundancies to increase staff levels and those that expect to decrease staff levels.
HOW IS THE NORTH WEST PERFORMING?
Manchester makes up the bulk of hiring activity in the North West, with the total proportion of vacancies at 49%, up from 47% in 2019.
Hiring demand up by 104% in 2020, which indicates Manchester is growing at a faster rate than the wider region. The single largest recruitment area in the city is Tech, with the sector now making up nearly 30% of all vacancies.
A 2020 report showed that Manchester was the fastest growing Tech Hub in Europe, with circa £527 million invested into Manchester-based tech companies.
Liverpool’s proportion for roles is at 9.5% this year, up on 7.5% in 2020 and 8% in 2019 — showing that the city is slowly gaining on other regional hotspots.
Private sector job growth in Liverpool grew by 20% between 2013 and 2019. This made it one of only two locations, out of sixteen in the UK, to see such strong employment growth. IT remains the largest sector for roles in Liverpool, making up 16% of the total vacancies in the city.
Digital innovation has been a key theme, with Liverpool’s 5G Create Project supporting 5G-enabled healthcare and education applications for the local community.
This is part of a wider government-funded project to boost technology innovation in the UK.
RESPONSES TO THE TALENT SHORTAGE
When asked how they would deal with hard-to-fill vacancies, the largest category of response was to upskill more existing staff (44%). 26% of businesses said they would hire more apprentices to combat the skills gap.
Location and flexible working offerings are changing:
81% of employers are planning a pay review in the next 12 months (to June 2022)
CIPD Resourcing and Talent Planning Survey 2021
Labour Market Outlook – Summer 2021
APSCo VacancySoft North West Regional Trends Report September 2021
ONS – Labour Market Overview, UK: October 2021
September 21 KPMG AND REC UK REPORT ON JOBS (IHS MARKIT)