It’s a busy time for the recruitment sector. According to the latest report from the REC more than 80% of employers are looking to hire new staff in the next three months. With this in mind you could be forgiven for assuming that recruiters are having an easy time at the moment. However speak to recruitment consultants and you‘ll undoubtedly hear that the current climate is presenting some significant challenges.
Vacancies may be coming in thick and fast but with UK employment at its highest on record (74.1 per cent) there are fewer candidates available to fill them. Competition for strong candidates is fierce and in many sectors there are significant skills shortages. Wages have risen and candidates have high expectations, employers are also keen to retain staff at the moment and are working hard to keep trained, valued employees.
Many organisations are reportedly working at close to full capacity and are relying on temporary staff to cover busy periods and/or plug skills gaps. This is great news for the recruitment sector but can be challenging when the pool of available candidates is shrinking.
There are also a number of things that might impact the jobs market in coming months. Wages are rising and the new living wage is being introduced this April. This may force some employers to reduce hiring in a bid to try and balance rising wage bills.
The referendum on Europe, which is now fixed for June, is something else which will be concerning recruiters and employers. The uncertainty ahead of the referendum is likely to have an impact on markets and exchange rates as well as business confidence. Furthermore an exit from the EU could exacerbate the existing skills shortage in the UK creating more headaches for recruiters.
