Over 180k New Jobs In The First Week Of January. Why?
Whilst there is a sense of caution, getting into the swing of 2023 shows optimism.
According to Recruitment & Employment Confederation (REC) labour force market tracker, the first week back in January, highlighted over 180,000 new job adverts. This is a 24.5% increase in the same period in 2022.
Let’s share how we look at the start of the year and how this spike in new job adverts looks.
Karen Jayne Harris, Senior Consultant, shares her thoughts, “We are seeing people leaving industries. For instance, according to TUC 1.8 million public sector (October 2022) workers are seriously thinking about quitting the sector. There is this mass exodus that awaits where pay is notoriously low.”
“The January stat is high as we are seeing flexibility of roles as people redirect their careers. There are shortages in professional, technical skilled sectors, but there is no reason not to have optimism and hope. There will always be peaks and troughs in recruitment, we all adapt.”
Natasha Hall, Sales Manager, highlights the cyclical world of recruitment and how the increase in job adverts looks. “In the commercial sector, we are seeing a spike in activity now. Companies put hiring freezes at the end of the year and then start with a fresh outlook in January. We are not seeing huge peaks and low troughs, what is happening is a more balanced flow. For instance, a client used to have a requirement from zero to 60 staff. What they did was maintain a proportion of staff over winter. This was by operating efficiently, whilst it would have meant an increase on the wage bill, it reduced the time to train staff and keep level continuos. 2023 is going to be about efficiencies and thinking strategically.”
Jordan Ball, Senior Industrial Recruitment Consultant, highlights what she sees as the biggest change as 2023 progresses. “It is still a candidate-driven market and more so because of the cost of living. Pay rates are more resonant than ever. The minimum wage of £9.50 an hour to a lot of people is just something they cannot survive on. There is movement around the job market at the moment and companies paying the lower end of the pay scale are losing staff.”
To some of the team, who came into the recruitment industry in 2022, are seeing progression, in what is a challenging time for many businesses. Kat Bielecka, Recruitment Consultant, shares her perspective, “Operating and working within a UK downturn is all I have known, which means that this is the way I work. I am seeing the completion of roles, and people starting new jobs and whilst there can be a sense of caution, there is also progress. That is something to take forward for the rest of the year.”
Similarly Georgia Brooker, Financial Recruitment Consultant is seeing headway. Working in the financial sector, companies are putting focus on working efficiently, so there are many credit controllers and accounts roles at the moment. As businesses manage money on a more pragmatic level, it is also providing potential for people who work in this sector.”
While the short term can be distracting, we are seeing businesses that are planning to set themselves up for long-term success.
This is by seeking for new talent, adapting, creating a sense of unity and growing their business.