So far this year IHR have run 31 in-person and virtual events and from these events surveyed over 3,000 attendees, with some exciting findings.
We continuingly ask our In-house recruiter delegates about what their current top challenges are, as well as discuss with Recruitment Leaders about any current solutions that they are looking to implement at our conferences and exhibitions. Now is the perfect time to partner with IHR and be involved with the largest community of In-house Recruiters in the UK.
This month we reflect on the recent drop in unemployment figures and what this means to the recruitment industry.
Unemployment Rate
In the last 3 months the unemployment rate fell by 3.6%, the lowest since 1974 – the employment rate by 0.2% and the number of vacancies also fell by a sizable 34,000.
Rises in regular pay are also failing to keep up with rising living costs. The UK’s jobs market, which has been buoyant since the economy began to recover from the pandemic, might be starting to turn, experts in the industry have warned.
“The jobs boom that began six months after the pandemic is probably coming to an end now,” said the Chairman of Reed, James Reed: “There are however still very large numbers of vacancies and people are still advertising a lot of jobs, and that’s why we’ve seen unemployment continue to decline.”
One reason for the fall in the unemployment rate is a rise in the number of people who are no longer looking for work, and so not counted in the figure. The inactivity rate rose to 21.7%, the Office for National Statistics (ONS) said, the highest since 2017.
Signs of decline
While the headline jobs numbers remain strong, with unemployment at its lowest in nearly half a century and long-term joblessness down, there are some signs of a turn.
Firstly, the lower unemployment rate is not really about a jobs boom, it is more reflective of fewer people actively looking for work.
So, with job numbers remaining high could this be the silver lining on some dark economic clouds. Other elements here reflect the wider cost of living pressures. Real pay continues to fall sharply, especially for public sector workers. And despite a slowing economy, vacancies remain high. Labour shortages are in turn restraining businesses and could mean inflation remains higher for longer.
There is one unemployed person per vacancy, a record low, and the jobs are not being filled. If the government wants to “go for growth” they will have to change things and make that happen now.
Labour Shortages
Businesses have warned that the squeezed labour market is having a detrimental effect.
“With firms doing their best to keep afloat during a period of spiralling costs, they are also facing an extremely tight labour market which is further impacting their ability to invest and grow,” said Jane Gratton from the British Chambers of Commerce.
“During a period of increasing inflation, and a stagnant economy, we cannot afford to let recruitment problems further dampen growth.”
Tony Wilson, director at the Institute for Employment Studies, also warned that “firms simply can’t find the workers to fill their jobs”.
“This is holding back growth but also pushing up inflation, with pay growth in the private sector now running above 6% and contributing to even higher prices.”
At IHR, we are seeing that Recruitment Leaders are seeking (and obtaining) the rewards and recognition for steering their TA teams through the ‘stormiest waters’ most have ever seen.
Conclusion
At IHR we want to make sure we put the right content to our members, which is why we like to keep on top of their topics of focus and interests. We encourage partners to connect and share their views, that way we can get a holistic picture of the outlook for our industry. We look to share best practice with everyone and would encourage you to be an active member in our community.
This year’s IHR Awards has seen a 174% increase in entries alone from last year and it is set to be the largest celebration of In-house Recruitment since the pandemic.
We hope you can join us for this year’s awards to celebrate the industry’s successes on the 30th November in London, more details just click here.
If your involved in supplying the recruitment industry, and you think you have research that will be of interest to our community, please get in touch.
