In a promising sign of labour market resilience and the potential for economic recovery, the Recruitment & Employment Confederation (REC) and Lightcast’s latest Labour Market Tracker reveals a robust August for hiring.
With 189,888 new job postings during the week of August 7-13, 2023, the data showcases a stark contrast to the same period in the previous year, indicating a surge in hiring activity.
The year-on-year comparison paints a striking picture, with a 28.8 percent increase in new job postings compared to the same week in August 2022 (8-14 August). This surge in hiring has defied the annual August slowdown, which had been more severe in previous years.
One noteworthy aspect of this year’s data is the absence of any region experiencing a decline in job advertisements during the week of August 7-13, 2023, in comparison to the previous week (July 31 – August 6, 2023). This widespread stability points to a nationwide trend of increased hiring activity.
What about active job postings?
The number of active job postings in the same week, 2,303,479, represented a 7.2 percent increase compared to the previous week (July 31 – August 6, 2023). Furthermore, it was a staggering 60 percent higher than the same week in the previous year (8-14 August 2022). This data reflects sustained demand in the job market and suggests that job listings remain active for more extended periods, primarily due to the continued difficulty in filling some roles.
Neil Carberry, Chief Executive of the REC, commented on these encouraging figures, stating, “Over the past year, we’ve seen hiring gradually slow in various sectors, while labour shortages persist in others. Businesses had been cautious about hiring due to factors like high inflation and the cost of capital. However, recent client feedback has been more positive, and today’s job advert numbers reflect a greater confidence in hiring plans compared to August 2022.”
Carberry also emphasised the ongoing challenges in some markets due to factors such as skills shortages, job design, and candidate accessibility. He underscored the importance of firms partnering with professional recruiters to navigate these challenges effectively.
Labour supply remains constrained
While the labour market has shown slow growth, labour supply remains constrained, and candidates have more choices than ever. Carberry concluded by highlighting the need for a robust industrial strategy encompassing skills, immigration, welfare, infrastructure, and taxation to drive economic growth and ensure prosperity for workers and public services.
In terms of specific job categories experiencing growth during the week of August 7-13, 2023, compared to the previous week (July 31 – August 6, 2023), notable increases were seen in roles such as police officers (sergeant and below) (+15.4%), advertising accounts managers and creative directors (+15.1%), and legal professionals (+13.9%). Other positions including plasterers (+12.8%), TV, video, and audio engineers (+12.3%), and groundsmen and greenkeepers (+11.7%) also saw substantial growth.
On the flip side, occupations like driving instructors (-3.0%), floorers and wall tilers (-1.3%), print finishing and binding workers (-0.3%), leisure and travel service occupations (+0.1%), and market research interviewers (+1.8%) experienced the lowest growth in job advertisements.
What about hiring within regions?
Regionally, several areas witnessed significant increases in job adverts during the same week, with Sheffield (+12.1%), Cardiff and Vale of Glamorgan (+10.8%), City of Edinburgh (+10.6%), East Dunbartonshire (+10.4%), and Glasgow City (+10.3%) standing out. Notably, no region experienced a decline in job adverts compared to the previous week (July 31 – August 6, 2023).
Conversely, Kensington & Chelsea and Hammersmith & Fulham (+3.4%), Bexley and Greenwich (+3.6%), Gwynedd (+3.7%), Westminster (+3.8%), and East Lothian and Midlothian (+3.8%) exhibited the lowest growth in job adverts.
In a comparative analysis, it’s worth noting that Scotland has experienced a more pronounced decline in job postings in 2022-2023 compared to the previous year, diverging from the trends observed in other UK nations. This decline appears to be widespread across the private sector, with some areas, such as Aberdeen and Aberdeenshire and Perth, Kinross, and Stirling, exhibiting more positive trends than others.
These recent findings indicate that the labour market is showing signs of resilience and potential recovery, despite previous challenges and uncertainties. As hiring activity continues to surge, it offers a ray of hope for both job seekers and the broader economy.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
