Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

RetailBrexitCoronavirusLatest NewsFurlough

Hiring continues to fall but pace slows

by Rob Moss 6 Aug 2020
by Rob Moss 6 Aug 2020

UK recruitment activity continues to decline because of the Covid-19 pandemic, but at its slowest pace since the crisis began in March.

The latest monthly data from the Recruitment and Employment Confederation and KPMG showed that permanent appointments and temporary placement both fell at their softest rates for five months as more parts of the economy reopened.

Covid-19 most read

Can remote redundancy conversations be sensitive and fair?

Is it really the end of the office?

Coronavirus and travel: seven questions about quarantine

The number of vacancies continues to fall but widespread redundancies is driving a substantial increase in the availability of workers.

James Stewart, vice chair at KPMG, said: “With the softest rates of decline seen for five months, it’s encouraging to see the downturn in recruitment easing as parts of the economy reopen.

“However, we are still a long way from being out of the woods, with hiring plans remaining on ice and the uncertain outlook still weighing heavily on business’ recruitment decisions.

“As the furlough scheme unwinds, unemployment is likely to rise further, proving both an opportunity and challenge for government to create training and skills programmes for jobseekers – and help bring confidence back to the UK workforce.”

It comes as the Bank of England revised down its forecasts on the severity of the impact Covid-19 will have on the economy. The Bank now anticipates the economy to shrink by 9.5% this year, down from 14% in its last forecast.

The UK still faces its hardest recession on record but the Bank expects the UK economy to grow by 9% in 2021, and 3.5% in 2022, with the economy returning to its pre-Covid size at the end of 2021.

Unemployment, said the Bank, would increase to 7.5% by the year-end, almost double the most recent official rate of 3.9%.

According to the REC, staff vacancies declined across each of the 10 monitored job categories in July. The steepest reductions were seen in retail, and the hotel and catering sector. The weakest fall in demand was for engineering roles.

As the furlough scheme unwinds, unemployment is likely to rise further, proving both an opportunity and challenge for government to create training and skills programmes for jobseekers – and help bring confidence back to the UK workforce” – James Stewart, KPMG

The only sectors to register higher temporary vacancies in July were blue collar and construction. Of the eight remaining job categories that registered poorer demand for short-term staff, the steepest decline in vacancies was seen in retail.

Neil Carberry, chief executive of the REC, said: “While permanent placements and temp billings still decreased last month across most areas of the country, the pace of decline has slowed hugely as the tide turned on lockdown. With the economy opening up through June and July, we would expect an improving trend in the coming months as firms recover from the worst of the crisis. The fact that demand is now increasing for temporary blue collar and construction workers is also a good sign.

“There are far fewer vacancies in the market than before March, and more people looking for jobs. Recruiters will be key to helping people build confidence and find work – but the reality is that government needs to help kick-start hiring. Reducing employers’ national insurance rates would cut the cost of hiring, and a good Brexit trade deal will also support stronger business confidence and investment.”

The research also found that weaker demand for staff, budget cuts, and a substantial increase in the supply of labour added further downward pressure on starting salaries. Permanent starters’ pay fell sharply overall, with London recording the sharpest reduction, while the Midlands saw only a mild fall.

Recruitment and resourcing opportunities on Personnel Today

Browse more recruitment and resourcing jobs

Rob Moss
Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

previous post
Third of staff ‘want Covid-19 vaccine’ before workplace return
next post
NHS to pilot ‘improved’ OH as well as ‘resilience hubs’

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

Retail headcount declines at fastest rate in 14...

26 May 2023

Pets at Home jobs boost with new stores

26 May 2023

Half of UK workers seeking a new job

24 May 2023

Met Police cyber unit hit by recruitment crisis

19 May 2023

Sharp fall in salary transparency in job ads

17 May 2023

Record number out of work due to long-term...

16 May 2023

Public sector pay awards set to rise at...

15 May 2023

Permanent hires fall at fastest rate for two...

10 May 2023

Small employers losing money from bad hires

5 May 2023

Job ad by Ministry of Justice reinforced ’negative...

5 May 2023

  • The HR Bundle: Your one-stop guide to building a successful global HR Department PROMOTED | Get your hands on Deel’s free HR bundle...Read more
  • The Benefits of an Employee Assistance Programme PROMOTED | EAPs support employees in a range of ways...Read more
  • Intergenerational working and how to manage up and down the generations PROMOTED | The benefits and challenges of intergenerational workplaces...Read more
  • Bereavement in the workplace: How training can help HR get it right PROMOTED | HR professionals play an essential role...Read more
  • UK workforce mental wellbeing needs PROMOTED | The mental wellbeing support employers are providing misses the mark...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2023

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2023 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+