Hiring Trends Q3

Hiring Trends Q3

WHAT ARE WE SEEING?

24% of businesses anticipate A Lack of Job Applications

48% of candidates are more selective in the roles they apply for

Time to hire is increasing, exacerbating skills shortages

THE TALENT SHORTAGE CONTINUES (again!)

The market remains candidate short, with particular emphasis put on

  • Brexit, and uncertainty around visa rules
  • Largest population drop since Second World War
  • Knock-on effects of lockdowns

“Skills shortages in my industry” is a challenge anticipated by 36% of HR Decision Makers, with “industry wide labour shortages” also a concern for 28%.

Inflation and the increased cost of living are expected to have a huge impact on the requirements of jobseekers and companies alike.

46% of employers that currently have vacancies are reporting recruitment difficulties, up from 39% last quarter.

Only 16% of businesses reported that all vacancies advertised in Q4 have been successfully filled.

HIRING REQUIREMENTS REMAIN HIGH

The proportion of employers planning to recruit in the three months to September 2021 has risen again to 69%.

The number of job vacancies in October to December 2021 was a new record high of 1,247,000.

Hiring is up 69% on the three year average between 2017-19, and 114% up in relation to 2020.

IT Devs and Engineers are the most sought after skillset, accounting for 28.5% of all new IT jobs.

The North West has seen a 131% year on year rise in vacancies.

 

 

The net employment balance has risen to +38, its highest level since tracking began.

The net employment balance measures the difference between employers expecting to increase staff levels in the next three months and those expecting to decrease staff levels.

 

IT SECTOR HIRING

IT Developers and Engineers account for 28.5% of all new IT jobs

IT Management Specialists account for 21%

Technology, Telecoms and Banking are the largest markets for hiring tech talent

IT Support vacancies are the fastest growing, and have already exceeded last year’s volume by 7.5%

UX researcher jobs are notably up 320% year on year

 

RETENTION IS BECOMING KEY TO EMPLOYERS

28% of employers flagged retention as a challenge for the coming months, and are looking for new ways to reengage staff

75% of the workforce are considering changing industries in the wake of the pandemic

46% of employers are planning to upskill current staff rather than hire in new

 

JOBSEEKERS ARE BECOMING MORE SELECTIVE

48% of candidates say they are more selective in the roles they are applying for

40% are more prepared to negotiate with a new employer

29% believe their skills are seen as more valuable in the current market

15% of working age adults are currently looking for a job, with 21% planning to look in the first quarter of 2022

29% of workers looked at jobs in the last quarter of 2021 but did not apply

 

ADVICE FROM THE FIELD

“Businesses need to make sure they are reacting to the long-term challenges of this market, thinking harder about their offer to staff and how to shape their future workforce. Recruiters are ideally positioned to help employers with this, and support governments across the UK on the skills, immigration and tax reforms that are needed to keep us competitive.”

Neil Carberry – Chief Executive REC

“Next year will see an “excess of 4% GDP growth, which should equate to 20% growth for recruitment companies. Recruiters should use this amazing time to build better businesses with more upfront payments, more exclusivity and more recurring revenue products to increase business value.”

Simon Bliss – Chairman at TEAM

SOURCES

APSCo VacancySoft Year in Review January 2022
APSCo VacancySoft IT Sector Report December 2021
TotalJobs Hiring Trends Insights Q3
TotalJobs Hiring Trends Insights Q4
Labour Market Outlook – Autumn 2021
ONS – Labour Market Overview, UK: January 2022
December 21 KPMG AND REC UK REPORT ON JOBS (IHS MARKIT)