As summer holidays come to a close this week, and the economy prepares for the end of furlough, September will most definitely bring new beginnings for the employment market. Although the UK job market continues to shift, the recruitment market looks healthy and positive. However, neither companies nor recruitment firms are able to keep up with the demands of the growth and employment strategies of many businesses in the UK.
Since the end of 2020, the UK employment market has shown signs of recovery. Between April and June 2021, the employment rate increased by 0.3 percentage points to 75.1%, while the unemployment rate fell by 0.2 percentage points to 4.7%.
The availability of candidates continued to decline rapidly throughout July and August 2021. The KPMG and REC UK Report on Jobs found that pandemic-related job insecurity, fewer European workers following Brexit and low unemployment contributed to candidate shortages in July. By August, candidate supply was falling at a record pace, increasing competition for workers and driving further increases in starting salaries.
REC’s latest survey found business confidence in the UK economy rose by one percentage point to net: +18, confirming the positive outlook, this has been further established by the number of new enquiries we are receiving on a weekly basis at Citrus Connect. It looks like we are in some form of economic recovery as the survey also shows that demand for labour remains high. We still have to consider that even if a large number of candidates come off furlough in August and September, it is very likely that the increased demand for workers will continue to cause shortages. “There will be particular pressures in logistics, food manufacturing and hospitality as we gear up for Christmas, and hiring for this period has already started.” (REC)
Businesses need to ensure they have a robust future proof plan to ensure they can source and recruit the right people they need in the coming months and years. With competition for candidates increasing, having the right sales recruitment strategy in place can help businesses build the teams they need to support continued growth. For the government, the concern should be whether labour shortages will limit business and economic recovery as a whole.
SELF EMPLOYED, COMMISSION ONLY SALES ROLES ON THE RISE
If we’re connected on LinkedIn, you’ll know I recently shared an article looking at how redundancy and unemployment were driving entrepreneurship in the UK between 2016 and 2020, a trend that became even more prominent during the pandemic.
Research from AXA found that 30% of small businesses founded during this period were started by people who had been made redundant or were unemployed. With the sharp rise in the UK’s redundancy rate at the time, this trend was expected to continue.
At Citrus Connect, we’re certainly seeing a similar shift, with more candidates opting for or becoming open to self-employed, commission-only sales roles. This increased appetite from both businesses and candidates means that 75% of the roles we’re currently recruiting for are self-employed and commission-only, with more than 400 vacancies our team is working hard to fill.
After experiencing a lack of control over their earning potential, more candidates are looking for opportunities that give them greater control over their careers and income, rather than leaving their earning potential solely in the hands of an employer.
August Recruitment Insights:
- In the first week of August, there were 1.65 million active job adverts in the UK
- There were around 204,000 new job adverts posted in the same week, the fourth highest weekly figure since the start of the pandemic
- The last three weeks have seen the highest numbers of new job postings since mid-May, but labour shortages continue to affect many sectors
- Supply of workers plummets, driving stronger increase in starting pay
- Vacancies expand at record pace
Other key figures from the latest JobsOutlook include:
- Employers’ intentions to hire permanent staff in the medium term (the next 4-12 months) remained high at net: +26.
- Meanwhile, medium-term demand for temporary agency workers grew by four percentage points, to net: +20.
- In July, two in five (43%) employers said that they needed to restructure pay grades across their business to reflect pay increases after the National Living Wage was raised in April 2021.
It will be interesting to see how things unfold as we head into September. If growing your sales team is part of your plans, discover how Citrus Connect builds and scales sales teams and how we can help you find the right people to support your growth.
Best Wishes,
