The latest report from KPMG and REC shows that candidate availability has risen at the sharpest rate for two and a half years. This is positive news for businesses that are looking to grow, who can feel optimistic about there being a greater pool of talent available for them to hire from.
Although hiring has been subdued during the first half of 2023 there is growing confidence in the UK’s improved economic outlook and REC’s latest JobsOutlook survey found that employers’ confidence in making hiring and investment decisions and the demand for both permanent and temporary workers will continue to increase during the next quarter of 2023.
The modest rises in both permanent and temporary staff availability supported this upturn. This demonstrates a progression in vacancies being filled and a step in the right direction of returning to pre-pandemic levels of stability in the labour supply.
Employers continue to seek upskilled and reskilled workers to fill their vacancies and skills shortages do still persist across many sectors including the technology sector, especially in roles such as Data Engineers, Automation Testers, Developers, Digital, IT, Software, and Software Engineers.
"It is felt that workers were becoming more willing to look for new roles, particularly in return for higher salaries. With candidates potentially being required to change sectors in order to fulfil their job search, recruitment agencies can have a key role in helping widen the net of places that firms look for candidates."
The continuing pay growth is likely to be reflective of the impact of inflation on wage offers and low labour supply. This means increasing pay is likely to continue, despite more people beginning to look for work.
Our key takeaway from the latest KPMG and REC report is that although the market is still slightly hesitant around the state of the economy, the dire predictions haven’t come to fruition and employers are more confident in taking steps to recruit for new roles within a larger pool of talent that are happier to change jobs.
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