Some Interesting Labour Market Data and How to Increase Your Success at Attracting Job Seekers

Posted 5th May 2023

So, we're now well into Q3 and it's been a somewhat tough year economically has it not. Certainly, ONS based figures indicate that the UK is still below pre-pandemic levels, whereas the U.S and Canada, for example, are up 3 - 4% and closer to home, Italy, France, and Germany are at least showing small improvement.

This blog however is more concerned with giving an overview of certain UK employment market data, some insight as to why and subsequently what employers should be mindful of moving forward to try and successfully recruit within what are most certainly job seeker driven conditions.

• Of the UK population (approx. 67 million of us), unemployment presently stands at 3.8%, a little up on last quarter, and it's forecast to peak at just over 4% by the end of the year.
• Within the 16 - 64 age bracket (just under 42 million of us), there are more job vacancies than there are unemployed.
• Wages are up, almost 7% in the private sector and just over 5% in the public sector.

Sources: OECD, ONS

Job vacancies...

March 2020 (around the onset of Covid-19 of course) saw an almost immediate and significant drop, but then, interestingly, an even more significant increase in 2021, through 2022 and until Jan 2023, when it again dipped quite dramatically.

Job vacancy numbers fell across over 70% of industries, some 190,000 less than the same period in the previous year and while many sectors have not fared well, Wholesale, Retail and Motor Repair seeing the largest fall in job vacancies (approx.150,000, since pre-pandemic), inevitably others have seen considerable increase, the largest in Health and Social work (200,000+), Professional, Scientific & Tech activities (140,000+), and Information & Communication (135,000).

The ongoing impact of AI...

The automation of physical tasks (namely robotics in manufacturing etc.) and knowledge-based work (i.e., reporting and language translation) continue to rise and indeed, industrial robotics are already being used across a range of sectors, including food & drink, pharmaceuticals, and cosmetics.

These technologies are also increasingly being used for programming, customer service and even sales jobs, but it's been said that “You will not lose your job to AI. You will lose it to another person who is using AI effectively” ...something to consider, but how do surveyed employers apparently see it.

• 93% of managers will encourage employees to use AI tools to improve performance at work.
• 90% of managers believe that AI tools will grow in popularity as layoffs continue during uncertain economic times.
• 75% of managers believe their employees fear that the implementation of AI tools will lead to their eventual replacement.
• 68% of managers say that AI tools will provide them an opportunity to lower salaries as less human-powered work will be needed.
• 66% of managers say they would gladly replace employees with AI tools if the work was.

Which type of worker are we short of in UK?...

The Top 6 roles presently in demand:

• Programmers and Software Developers
• Cyber Security Specialists
• Health Services and Residential Care
• Architects
• Graphic Designers
• Physical Scientists

Sources: Gov Skilled Worker Shortage List

Other in demand disciplines include:

• Health Services and Public Health Managers and Directors
• Residential, Day and Domiciliary Care Managers
• Nuclear Chemical Scientists
• Biological Scientists
• Constructional Engineering Scientists
• Oil & Gas Scientists
• All Engineers
• IT: Business Analysts, Architects, System Designers, Programmers, Software Developers, Web Designers and Cyber-Security Specialists
• Vets, Architects & Lab Technicians

Why are job vacancies hard to fill right now?...

Some 300,000 more people are now unable to work due to long term sickness, in no small part a legacy of the pandemic and 600,000 or more over 50’s are now economically inactive. This latter statistic being one that should lead to the firm encouragement of more over 50's returning to the core workforce, along with re-training and an increased focus on the use of automation, rather than that of being replaced by it.

In addition, burnout is more frequently and increasingly cited as a reason for stepping back or certainly for considering doing so and as many as 56% of the gen Z (to 25 years old) / millennial (26 - 42 years old) workforce say they would simply quit a job if unhappy in it.
The solution...giving job seekers what they want and need if possible in order to compete for their services is certainly advisable, but then it's more complex than that because different job seekers have different motivators of course.

• 60% cite a pay rise (other than a lump sum payment) as their key motivator.
• 39% suggest a one-off payment (e.g., a bonus)
• 25% want hybrid working arrangements to reduce travel costs.
• 25% would like free meals and snacks during working hours.
• 22% say the option of selling back unused holiday entitlement.
• 14% suggest “Salary sacrifice” options (e.g., payments for a bike, car or other expenses taken off their gross income)
• 13% look for other financial well-being schemes.

Sources: Totaljobs

Overall, a positive workplace culture, with flexibility, social awareness, equality, and ethics are key to many, especially the gen z and millennial population, with remote / hybrid and flexible working here to stay.

The biggest deal breakers for potential employees now?...

• Long commutes and lack of flexibility remain the top two reasons for failing to pursue a new employment opportunity.
• 73% of London based employees say they would quit their job if asked to return to the office five days a week.
• Slow or outdated technology has become another increasing concern for over a third of staff polled, with increasing numbers citing this as major deal breaker.
• Two thirds of potential job applicants will ignore a job advertisement if it fails to specify a salary or close salary range (this is big and too many still go to market without specifying salary)
• Interestingly a third also suggest that 'chatty' co-workers are a deal breaker, a slight increase since previous surveys and likely a result of recent, predominant, home working.

Sources: Bloomberg 2022

As the gen Z proportion of the workforce rises steadily, entering in trainee / junior level roles, increased focus, from not only recruiter, but also ultimate hirer, must be on SPEED and the fast pace at which the, often virtual, process will need to move along at. Outdated, antiquated recruitment and hiring methods will become a major turn-off.

Sources: Recruiterflow – Sagrika Jain

Some recommendations then...

Shift from hiring solely for a specific location and instead focus on hiring more remote-based and flexible candidates where possible.

• This can significantly open-up your potential job seeker audience and so help ensure that the vital posts don’t go unfilled.  

Examine, update and, if possible, even increase your benefits offerings to attract new talent.

• Job seekers want more flexibility when considering a new role and many are prioritising a better work life balance. Therefore, if companies can offer an increased level of real benefits, along with other desirable qualities, they may be able to slightly decrease the amount of salary needed, though this latter point should not be seen as a given of course.

Re-examine and, if needed revise, your salary before making an offer and in line with market trends if you are struggling to secure candidate acceptance.

• Inevitably some companies are not aligned with other generic salary standards causing them to miss out on hiring the desired people.
• Being continuously aware of current market trends allows employers to assess where they are in relation and so what needs changing.

 

If you're recruiting, it's certainly not the easiest of markets to do it in, that's for sure, but as with most things, the tide will turn. Regardless though, by staying aware of what we've talked about here, accepting that recruitment and hiring is now more than ever a two-way street and working together, often at speed, the desired results will still come.