[BROMLEY, 25-05-2023] Although the UK economy is experiencing difficulties, the labour market remains robust. As of December 2022, UK job postings were 50 per cent higher than the pre-pandemic level from February 2020, after seasonal adjustments. The figure is a new high for job postings since the pandemic started. Despite the cost-of-living crisis in the country, many companies are still interested in recruiting talents.

Tight Labour Market

The labour market may be affected less than in previous recessions. Based on an analysis of the relationship between economic growth and job openings during the financial crisis of 2008/2009, current projections from the Bank of England and the Office for Budgetary Responsibility indicate that the number of unemployed individuals per job opening is unlikely to increase significantly from its current level.

Higher Unemployed to Vacancy Ratio

According to the Bank of England scenario, the unemployed to vacancies ratio may increase to 1.7 by the end of 2023 and 2.1 by the end of 2025. On the other hand, under the OBR scenario, the ratio could increase to 1.5 by the end of 2023 and just 1.1 by the end of 2025 if the economy recovers faster.

Higher Private Sector Pay

According to the Office for National Statistics (ONS), wage growth is significantly different between the public and private sectors. While the private sector regular pay increased by 6.9 per cent yearly, the public sector pay only rose by 2.7 per cent annually.

Working Days Lost

As a result, more working days were lost due to labour disputes in October than in any other month since 2011. This trend is expected to continue throughout the winter as further strikes are planned in various public services.

Wage information shows that none of the occupational categories is keeping pace with inflation, measured at 9.3 per cent year on year on the consumer price index scale in November and 10.7 per cent year on year on the CPI scale amid the ongoing cost of living crisis.

The labour market has gone through an unusual phase during the pandemic recovery, and now it's entering a new phase. There is optimism that the UK will manage this shift well and that the impact on the job market will be less severe than in previous economic downturns. Agencies such as Triumph Consultants Limited help both private and public sectors fill the gaps in their recruitment efforts.

About Triumph Consultants Limited

Triumph Consultants Limited provides temporary, contract, and permanent personnel to the public sector, including local authorities, central government, police, emergency services, and health and education sectors. They are a specialized supplier with a long history and wide experience in this field.

Interested parties can learn more about their services by visiting their website at https://www.tclrec.com/.