[KENT, March 14] - The labour market in the UK has undergone a normalization process, marked by a notable decline in job vacancies over the year, currently standing at 934,000 — though still higher than pre-pandemic levels. Despite a slight increase in the unemployment rate from 3.7 percent to 4.2 percent, the figure remains relatively low.

Throughout the year, wages have strived to keep pace with escalating living costs. However, the annual wage growth has gradually slowed, dropping from 7.3 percent to 6.5 percent in the latest period. This deceleration is seen positively in anticipation of the Bank of England's upcoming interest rate announcement on February 1st.

Minimal Real Pay Increase

Despite a wage rise, real pay has only seen a 1.3 percent increase over the year. The financial strain persists, with 38 percent of adults struggling to pay energy bills and 33 percent finding it challenging to afford rent. Salary considerations remain a significant factor, as research indicates that the quest for a higher salary drove 29 percent of resignations in the fourth quarter of 2023. In response to the economic climate, employers are prioritizing talent investment and emphasizing workforce retention strategies as they navigate the challenges of the current employment landscape.

Large-Scale Recruitment Activities

The fourth quarter of 2023 saw 78 percent of businesses engaged in recruitment, with 29 percent increasing hiring and 18 percent temporarily pausing it. Despite economic uncertainties, 22 percent maintained stability in their hiring and workforce strategies. Around 16 percent of businesses opted for flexibility by hiring temporary staff, freelancers, or contractors.

Focus on Efficiency

Restructuring efforts were observed in 21 percent of businesses, a slight decrease from the third quarter. The focus on efficiency for 2024 plans underscores the importance of securing the right talent. However, the tight labour market and economic inactivity have prolonged the hiring process, with the average time increasing from 5.8 weeks in the second quarter to 6.2 weeks in the fourth. This reflects the intensified competition for skilled workers and the evolving dynamics of the employment landscape, presenting challenges for businesses seeking to meet their workforce needs.

Meet Workforce Needs

Many employers express confidence in meeting their workforce needs in 2024. As the labour market cools, especially in the latter part of 2023, businesses are gaining optimism about hiring. However, concerns persist regarding ongoing labour and skills shortage, prompting a need for strategic investments in personnel to meet customer demands.

Increased Recruitment

In the first quarter, 27 percent of businesses plan to increase recruitment, with notable intentions in sectors such as Transport and Distribution, Real Estate, Medical and Health Services, and Media/Marketing/PR/Sales. Of those planning hires, 19 percent aim to boost recruitment spend on specialist roles, 15 percent for temporary staff or freelancers, and 11 percent to enhance diversity in recruitment pools.

About Jennings Morton Friel Associates

Jennings Morton Friel Associates has been recruiting outstanding permanent and temporary talent for numerous prominent businesses in Central London, Kent, and Surrey since 2002. With a broad reach, they operate seamlessly across Commerce & Industry and within the Education and Charity sectors. The organization's specialized focus and expertise, particularly in Executive, Finance & Accountancy, and Practice, allow them to deliver a high-quality, personalized service. Their approach combines traditional values with a commitment to assisting individuals and clients in achieving their ambitions.

Visit https://www.jmfassociates.co.uk/ for more information.