More jobs than people?
Not strictly speaking, however this week, according to the BBC and ONS, it was reported that there were more job vacancies, than there were those seeking a role. Does logic, therefore, suggest that if you want a job there’s one for you?
Of course not, and we know that. Operating in our markets, Manufacturing and Automotive, it’s about more than a bum on a seat, our clients have specific requirements and skills they require to remain competitive, efficient and growing. So the skills shortage hasn’t evaporated overnight!
There are some encouraging trends.
People who have been inactive economically, aged between 16 and 64, are moving into work, and job to job moves have been driven by people resigning from a role, rather than being dismissed or made redundant.
However, as we see a rise in inflation, now at 9% (18th May 2022), here at Expion, we see more people than ever before citing an increased salary as a reason to move role. Whilst most people say ‘money isn’t everything’ (and it isn’t), it is becoming more understandable as a justifiable reason for people to seek a new role. We reported in our Market Report in April, 59% of workers said a pay rise is essential to them. If it’s not on offer where they are, it’s a compelling reason to look for a role.
And whilst flexible working offers the opportunity for some people to manage commuting costs, it will be interesting to see whether there’s a growth in people’s interest in returning more to the office when fuel costs rise again in October. Shivering on a Teams call is likely to become increasingly unpopular when a fully heated office is available!
So when there are more jobs than people, what else can employers do?
Benefits can be a big draw. We’re seeing employers offering increased benefits packages, bonuses (including sign-on bonuses), and support for those wishing to gain qualifications. Wellness benefits are also on the rise. 24% of employers in our report said they were offering financial support through information, advice, and online resources, and 13% said they were offering actual financial support to workers.
Not all of this is forecast to last. With inflation tipped to hit 10%, and industry stating that prices are continuing to rise, economists have once again mentioned the word ‘recession’. If history is to be repeated, this will mean job losses and a rising unemployment rate.
So what does this mean for recruitment?
We know that recruitment tends to be one of the first industries to be hit when there’s economic uncertainty, and one of the first to recover. It’s fair to say this has certainly played out over the last 2 years. There’s no sign yet of any slowdown, however, the market is unusually overheated at the moment so any initial slowdown is likely to be more a return to normal rather than alarm bells.
But in the meantime, what a market to be in. And this is a market that suits all ‘gens’. From Gen X who are mid-career and want a work-life balance and stability before… (well you know) to tech-savvy millennials in Gen Y, and Gen Z who are much more likely to move roles after a shorter period of time. There are opportunities out there for everyone at the moment, so make the most of them!
For more information on how we can support you, get in touch with us via this website, or even give us a call!