Manufacturers rein in recruitment in summer 2023

UK manufacturers have scaled back their recruitment efforts as orders slow down, but they are expected to increase headcount by the end of this year.

According to Make UK and BDO’s manufacturing outlook survey for Q3 2023, the recruitment balance figure for the sector in the past three months was -1%, indicating that a greater share of manufacturers reported declining employment.

It found that although hiring intentions for the last quarter seemed positive in Q2’s survey, the reality looked very different as manufacturing activity slowed down.

However, the employment balance score for the next three months is +14%, suggesting that manufacturers are optimisic about their ability to hire towards the end of this year.

In July 2023 there were 70,000 live vacancies in the sector, a slight reduction from the 72,000 reported in the previous manufacturing outlook.

The ratio of live vacancies to 100 employed jobs was 2.9. This figure has been reducing since August 2022, when it peaked at 4.1.

Make UK is calling on the Chancellor to use his Autumn Statement to announce investment in skills, digitalisation and productivity and energy efficiency.

Policy director Verity Davidage said: “Manufacturers are seeing a very sharp slowdown in activity as the potent cocktail of rising interest rates, cost of living and slowing overseas markets bites hard. As a result, they are now battening down the hatches in the expectation that the next year is going to be anaemic at best and, potentially, much harder.

“While it’s clear the Chancellor doesn’t have a financial war chest to try and boost growth he should use his Autumn Statement to bring forward carefully targeted measures which could make a difference to companies’ efforts to boost skills and productivity. He should use whatever is available to get the best bang for his buck.”

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