It's been a great year for hiring, with the number of job postings continuing to grow at a steady pace. However, recent figures suggest that this growth is starting to slow, raising questions about how long the current boom can last. So, what's behind this slowdown? And more importantly, what does it mean for businesses looking to hire in the near future?
KPMG and REC's latest Report on Jobs survey provides further evidence of a UK jobs market that is losing momentum as we move into the year's second half. The research, which is compiled by S&P Global, showed that both permanent and interim recruitment growth softened in May, with the former recording its weakest upturn since early-2021.
This uncertain economic climate is likely to impact businesses' ability to find the workers they need. With salaries rising, businesses will need to be prepared to offer more competitive pay packages if they want to attract the best candidates. They may also need to be more flexible in their approach to recruitment, looking at candidates with less experience or from different backgrounds.
The overall candidate supply dramatically decreased in May, despite the rate of reduction easing to the softest level for four months. Underlying data indicated that permanent workers continued decline at a faster pace than temporary staff; however latest decrease was less severe, with just over one year has passed since the last peak. Greater caution around outlook due to skills shortages and fewer overseas works (and for those coming in a backlog of visas and slow processing times) weighed heavily on availability.
Salaries rose at an accelerated rate, despite softer than expected overall market conditions. This movement was the quickest since 1997, when compensation began being tracked in October!
While these findings are certainly cause for concern, they also present an opportunity for businesses looking to hire in the near future. By understanding what's driving this slowdown, you can get ahead of the competition and beat the best talent. At Altus Partners, we're experts in helping the Private Equity industry do just that. So if you're feeling overwhelmed by the current hiring landscape, or simply want to discuss your options further, don't hesitate to get in touch: firstname.lastname@example.org