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Latest NewsJob creation and lossesLabour marketRecruitment & retentionSkills shortages

Fall in job postings points to slowing recruitment market

by Adam McCulloch 30 Sep 2022
by Adam McCulloch 30 Sep 2022 Photo: Shutterstock
Photo: Shutterstock

There were 143,000 new job postings last week – the lowest number since early spring this year – as recruitment shows signs of slowing. This was a significant 8.3% less than a month earlier and the lowest figure so far in 2022.

The number of active job adverts across the UK has been cooling-off since the end of July. In the week of 19-25 September, active job adverts hit a low of 1.45 million, according to the Recruitment & Employment Confederation (REC)’s and Lightcast’s latest Labour Market Tracker.

However, there were notable increases in job adverts within the education sector as the new school year starts, with an 8.8% rise in demand for school secretaries, and similar demand for teachers.

The West Midlands saw growth in job postings in the week of 19-25 September, with three of the top 10 hiring hotspots in London. However, the local area with the highest increase in job adverts was Southampton (+6.6%), followed by West Cumbria (+6.4%) and Telford and Wrekin (+5.3%).

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At the other end of the scale, six out of the bottom 10 local areas for growth in active job postings were in Northern Ireland. Of those, Newry, Mourne and Down (-16.2%), Armagh City, Banbridge and Craigavon (-14.1%), and Derry City and Strabane (-13.5%) saw the biggest falls.

The decrease in postings was no surprise, said, Neil Carberry, chief executive of the REC. He said: “Employer demand is still significant, but a cooling-off is no surprise. With inflation high, and employers concerned about the economic picture, some moderation in hiring from the sugar rush of the past year was predictable.

“We are entering a new phase in our labour market. Workforce shortages make the impact of a slowdown on hiring much more unpredictable. It is far less likely that we will see much higher candidate availability, especially for roles requiring key skills, even if the economy slows.

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Carberry said the IR35 changes were welcome: “Changes to IR35 rules announced last week will help with bringing more labour on stream – but government also needs to address the other key elements of making the UK a great place to invest and create jobs. That includes skills reform, and stability in the fiscal and monetary outlook.”

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Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

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