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Latest NewsJob creation and lossesLabour marketRecruitment & retentionSkills shortages

Non-UK jobseekers prop up labour market postings

by Jo Faragher 27 Jun 2024
by Jo Faragher 27 Jun 2024 Architects were one of the hardest-to-fill roles, according to Indeed
Shutterstock
Architects were one of the hardest-to-fill roles, according to Indeed
Shutterstock

Job postings are down by a fifth over the past year, according to job site Indeed, but interest in UK jobs from foreign jobseekers has increased.

According to its mid-year Labour Market Update, job postings now sit at 0.9% below 1 February 2020 levels, just before the pandemic.

Over the same period, the share of searches for UK jobs from abroad has gone up by 40%, with foreign workers most drawn to roles in software development, engineering and mathematics.

India was the top source of foreign jobseekers, with 16% of ‘clicks’ on jobs in the first half 2024. The next highest source was the US, with 6%.

Labour market trends

No sign that generative AI is replacing jobs 

UK unemployment and inactivity continue to rise

Despite this, employers still struggle to recruit for certain roles, Indeed found. Engineers, software developers and architects were hard to recruit, despite high levels of foreign jobseeker interest.

Veterinary jobs are the hardest to fill, according to Indeed, with 40% of job postings in this area open for more than 60 days on average. Roles in civil engineering and aviation followed close behind (39% and 35% respectively).

Education roles saw the highest increase in posting, at more than double pre-pandemic level as schools try to stem staff shortages and teachers leaving the profession. Social science roles and estate agents experienced the second and third highest growth in postings.

Wages are also on the increase despite the overall softening of the market, with advertised salary growth showing a four-month high of 6.5% year on year, led by wage increases in lower paid jobs.

The Indeed Wage Tracker showed that lower paying categories such as childcare (wages up 8.6% year-on-year), cleaning and sanitation (8.5%), security and public safety (8.5%), loading and stocking (8.2%), retail (8.1%) and hospitality and tourism (8.0%) showed the strongest growth in wages.

This was partly due to the minimum wage uplift that came in in April, Indeed said.

The share of job postings mentioning remote or hybrid work remained steady at around 15%, its analysis found. A recent survey by Indeed found that 44% of candidates felt flexibility in working arrangements was important when looking for a new role. Around 2.4% of searches included remote or hybrid terminology, the report found.

Jack Kennedy, senior economist at Indeed said: “The UK labour market has continued its adjustment in recent months, though it remains somewhat tight and still competitive for employers in many sectors.

“Highly skilled jobs tend to always be harder to recruit for as they are naturally relevant to a smaller candidate pool. However, there is strong foreign interest in some of these jobs, meaning UK businesses may want to look at jobseekers from outside the country to fill gaps.”

He added that post-Brexit and changes to immigration policy, employers seeking to fill lower-paid jobs were often struggling, despite these jobs tending to have a larger candidate pool.

According to ONS figures, around 9.3 million people are currently economically inactive and many are on long-term sickness leave, an issue that – if addressed by the next government – could help to manage these challenges.

“Tackling inactivity, a longer-term skills strategy and the role of immigration in addressing labour shortages will be agenda items for the elected government,” he said.

“Alongside pay, flexibility remains a key tool for employers in the battle for talent. This is clearly top of mind for voters, with many saying they wouldn’t take a role if it didn’t offer flexibility.

“For those employers who can’t offer remote or hybrid roles, greater choice around shift patterns or even a four-day work week may be an alternative way to provide candidates with flexibility.

“A shortened working week currently remains a niche offering, meaning businesses who offer it may stand out to jobseekers.”

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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