*** New Research*** - Salaries are rising, with a shortage of candidates for jobs
It can be said that we are now living in a time where there is an employment market that has become 'Candidate driven', and where the market has become a 'Tight market'. Many may be asking “What do these terms mean?” Simply we are now in a place where employers are desperately wanting new candidates to join their business but are finding it difficult to attract new candidates!
Across most sectors, both temporary and permanent opportunities are growing, and a lack of candidates means it is not surprising to see pay also rising. If you are unemployed you will want to consider finding a job on our Zoek website straight after reading this blog.
The theory behind the trend?
Both permanent and temporary placement increased whilst expansion in organisations decreased. Job vacancies continued to rise sharply in June. Growth of demand for permanent staff edged up to a seven-month high, whilst short-term vacancies rose at a slower yet still strong rate. Salaries awarded to staff placed in permanent jobs increased further in June. Furthermore, temporary jobs and the rates of pay rose sharply, with the rate of growth broadly like April’s two-year peak.
Ultimately this excess demand has caused existing employees’ wages to steadily rise to keep them in employment along with a rise in wage for future employees because workers now hold a higher bargaining power.
Within a candidate driven market the employers will always want to act in favour of their potential future employee. Employers understand that candidates can otherwise pick from multiple opportunities similar to their own vacancies within a tight market. Candidates are regularly approached by interested parties offering them jobs. As a result, it makes companies extremely likely to negotiate salaries to attract the best talent.
What sectors are behind the hunt?
Tom Hadley, Recruitment & Employment Confederation (REC) policy director, explained the rise in appointments meant employers were feeling confident, but a lack of candidates remained a major challenge for recruiters - particularly in areas such as nursing jobs , construction jobs, engineering jobs, and civil service jobs. IT, Computing, & engineering led the overall uptorn in demand for permanent workers.
He said staff shortages were becoming "business critical" in many key sectors, and employers were having to "radically re-imagine" the way they recruit staff. While in recent months employers had resorted to paying higher salaries to attract suitable candidates, Mr Hadley said it was time they considered other ways to achieve this for example by providing flexible working environments and better progression opportunities. Within this market the employer begins to understand that it does not matter how many candidates they can find, if employers cannot attract employees, they are not going to want to work for the business. Employers understand that It has never been more important to start thinking along the lines of a candidate driven market to attract the best talent.
Locations and jobs vacancies trend
Jobs in Midlands saw the steepest expansion in permanent placements from all four monitored English regions, while the weakest upturn was noted to be jobs in London. Growth of temporary vacancies was strongest in the North of England including jobs in Liverpool, jobs in Manchester, jobs in Leeds. The weakest increase was registered in the South of England.
“It’s an ideal time for anyone to take the next step in their careers, as employers compete for new employees in a tight market, if you are unemployed, or even seeking a new opportunity… Remember to consider your next job search on zoek.uk
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