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In today’s Recruitment Roundup, we explore the latest insights from the KPMG and REC, UK Jobs Report, compiled by S&P Global. The recent report sheds light on the job activity and market capturing an insightful summary of a 2023 review.
The Recruitment landscape - 2023:
- As 2023 concluded, the report reveals a continued subdued outlook for recruitment, with both permanent placements and temp billings experiencing declines. The overall number of vacancies declined for the third time in four months, indicating a cautious approach from employers.
Descent in hiring activity:
- Despite a decline in hiring activity, both permanent placements and temp billings fell at softer rates compared to November. Muted demand for staff and recruitment freezes contributed to these trends.
Small increments in starting pay:
- The survey data suggests a slightly stronger increase in starting pay in December. However, this increase is the second-slowest recorded since March 2021, hinting at the economic challenges. Temp pay growth quickened but remained below the long-run average.
Availability of workers:
- The supply of candidates continued to rise sharply, although the rate of expansion eased from November. Redundancies and lower hiring activities contributed to the increased pool of available candidates.
Regional and sector outlook:
- All four English regions noted a decline in permanent staff appointments, with the Midlands experiencing the sharpest contraction. Temp billings varied regionally, with higher billings in the North of England and London but declines in the South of England and the Midlands.
- Demand for permanent staff increased in the public sector but fell further in the private sector. The public sector saw the first rise in permanent vacancies in four months, while demand for temporary workers increased in the private sector.
- Four out of ten monitored employment categories saw increased demand for permanent workers, led by the medical sector. Construction and IT & Computing experienced the fastest declines. Hotel & Catering showed the steepest increase in short-term vacancies, while Construction and Retail recorded the sharpest declines in demand for temporary workers.
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