Wow, thank you, what a take-up of subscribers to our first newsletter. I hope you enjoyed it, and if you think there is something we should be reporting on, then please let us know.
Again over the last two weeks, we have been reviewing newsworthy reports and articles on the recruitment market, and we have dissected them to give you a quick overview of the market.
There are some concerns, but there is much to encourage you for the second half of 2023. Don’t let the grass grow.
How one law that will change as a knock-on from Brexit will affect the Recruitment Industry? What is happening to the Non-Compete Law?
Non-compete clauses can significantly impact individuals’ employment rights and organisations’ commercial interests.
According to a recent article in Personnel Today, the lawfulness of such clauses has recently been questioned in the UK.
The Supreme Court recently found that an employer had acted unlawfully when it imposed a 12-month ban on an ex-employee taking up a competitive role.
The court found that the duration of the non-compete clause was too long, with 12 months being longer than necessary to protect the employer’s legitimate interests.
The case highlights the importance of employers ensuring that any non-compete clauses they include in contracts are fair and reasonable in terms of their duration.
Recruitment HR professionals should ensure they know the legal implications of non-compete clauses and that any clauses they include in contracts comply with the law. To learn more, contact Heather Salway at Jump.
The UK Temp market was Down 2.5% in March!
The UK workforce saw a 2.5% decrease in temporary workers in the first quarter of 2021, according to a report by the Recruitment & Employment Confederation (REC) and the ONS reported in SIA. This is the first decrease since the start of the pandemic.
The report also showed that unemployment rose slightly, by 0.2%.
Here are the seven key points to take away from this report:
1. The first quarter of 2023 saw a 2.5% decrease in temporary workers in the UK
2. This was the first decrease since the start of the pandemic
3. Unemployment rose slightly in the same period, by 0.2%
4. “The pandemic has had a huge impact on the labour market, with a substantial rise in unemployment,” said Neil Carberry, Chief Executive of REC
5. “We are now seeing the beginnings of a recovery in the labour market, with more people in work than at the start of the pandemic,” said Carberry
6. “However, there are still substantial regional differences in performance, and we need to ensure the recovery reaches all parts of the country,” he said
7. “We must act now to support young people and the most vulnerable in the labour market,” said Carberry
The report from the REC shows the labour market is starting to recover, albeit slowly. Are you experiencing the same?
Train hard to Recruit Easy.
For sales teams, training can be a powerful tool to drive success.
According to a recent study, two-thirds of learning and development professionals believe training positively impacts revenue.
The research, conducted by the Association for Learning and Development (ALD), looked at the impact of training on the sales performance of over 200 organisations across the UK.
It found that organisations that invest in training their sales teams tend to achieve higher revenues than those that don’t.
The study also revealed that training programmes tailored to the individual needs of sales teams had the most impact on sales performance.
So, investing in tailored training could be the answer if you want to boost your sales as the market gets harder.
The Future of Work in the UK.
The UK is facing some exciting changes for the future of employment. A new report entitled The Future of Jobs 2023 has identified five key points of interest that employers and job seekers should be aware of:
1. Digital transformation: Companies must embrace digital transformation to remain competitive. This will involve investing in technological infrastructure, process automation and upskilling current employees.
2. New job opportunities: Artificial Intelligence and machine learning will create new job opportunities, particularly in the tech sector, while traditional roles such as marketing and finance will evolve.
3. Skills development: The report identifies the need for a ‘skills revolution’, with employers needing to offer training and development opportunities to prepare employees for the new digital economy.
4. Talent mobility: The rise of remote working and the gig economy will give job seekers more flexibility and mobility when selecting employment opportunities.
5. Adaptability: Companies must be agile and adaptive to changing markets and technological advances to stay ahead of the competition.
The Future of Jobs 2023 report provides a comprehensive overview of the changes that the UK job market will face over the next three years. It’s essential reading for employers and job seekers alike!
The Global Size of Recruitment: You are part of a global industry worth $648 billion.
The global staffing market has seen an impressive growth of 6.4% in 2022, reaching $648 billion.
The staffing industry thrives worldwide, despite a cooling of growth from previous years. The European market is expected to grow by 1% in 23/24.
This growth indicates a strong demand for flexible, temporary and contract workers, with most markets in the Americas and Europe experiencing an increase in staffing firms.
In 2022, the US, Japan and the UK staff markets generated 55% of revenue. The US was the most significant contributor, and the UK was the third, representing 8% of the global market.
The Asia Pacific region also saw a 3.9% growth in the staffing market, with China and Japan leading the way.
This year’s growth is awe-inspiring, given the global economic challenges, which have made it difficult for the staffing industry to keep up with the service demand.
A breakdown of the RECs Labour Market Tracker.
As the UK job market continues to remain buoyant, the Recruitment & Employment Confederation (REC) has reported that there are now almost 17 million job adverts across the UK, up from 16.8 million in April 2021.
The REC’s Labour Market Tracker has identified a variety of crucial facts which demonstrate the strength of the UK jobs market. Here are ten key points to bear in mind:
1. There were 16.9 million job adverts in May 2023, up from 16.8 million in April 2023
2. This level of job adverts is 5% higher than in the same period last year
3. Recruitment agencies posted 4.1 million jobs in May 2023, up from 3.7 million in April 2022
4. This is 7% higher than the same period last year
5. Permanent job vacancies increased by 4% in May 2023 compared to April 2022
6. This is 7% higher than the same period last year
7. Temporary job vacancies increased by 6% in May 2023 compared to April 2022
8. This is 12% higher than the same period last year
9. The number of job seekers in May 2023 was 0.3 million lower than the previous month
10. This is 40% lower than the same period last year.
The REC’s Labour Market Tracker is a great way to stay informed of the latest job market trends and conditions.
And finally Good News Everyone:
The IMF forecasts the economy will grow by 0.4% in 2023, 1% in 2024, rising to 2% in 2025 and 2026.
This growth has been driven by strong consumer spending, with sales in the retail industry rising by 4.7%.
On top of this, the hospitality sector saw a rise of 3.8%, and manufacturing increased by 1.5%.
These figures are the latest sign that the UK is well on track in its recovery from the pandemic.
Let’s keep up the good work and make sure that the UK continues to make progress!
All the stats are pointing towards a recovery in the second half of the year across most of the recruitment sectors, not only in individual niche sectors but geographical areas as well.
Clients are pushing back on recruiters with a drive to cut costs, but also to improve their candidate flow and quality. We know that this is a false economy, and those recruitment agencies who provide value and initiative services tend to prosper in hard times.
Now is the time to review your services offering and build recruitment strategies that will lower the overall cost of recruitment to your clients and provide a flow of high-quality candidates. This can be done without lowering fees. If you are unsure how, why not contact us here at Jump?