Job openings have fallen for the first time in almost three years and wage growth is slowing, according to analysis by the Recruitment and Employment Confederation (REC) and KPMG. The vacancy index slipped to a reading of 49.2 in September, the first time in more than two years that it had fallen below the 50-point threshold that separates growth from contraction. The decline was driven by a dip in public sector hiring. The report also shows that starting salary wage growth slumped to a two-and-a-half-year low, while temporary staff wage growth stalled to its slowest pace in 31 months. Claire Warnes, a partner at KPMG UK, said: “Employers are clearly nervous due to the long-term economic uncertainty and budget constraints that are affecting businesses everywhere. This is leading to a continued reliance on temporary staff.” REC chief executive Neil Carberry said: “This feels like a market that is finding the bottom of a year-long slowdown. The relative buoyancy of the private sector is likely to be driving this more positive outlook.”
Our HR comment: Vacancies fall for first time in three years. | Consensus HR – Herts, Beds
Matthew P Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: – “This is an interesting article with some interesting statistics and shows that the recruitment sector is seeing major changes with growth slowing for the first time in the last three years. There is currently a lot of uncertainty in the market, and we wait to see what the rest of the year brings with an anticipated election next year. At Consensus HR, when we are asked to run a recruitment campaign for a client, we always ensure that we have a detailed strategy meeting to ensure we are only attracting the right people using the right media considering the salary for the role, role requirements, culture of the business and the overall recruitment strategy for the company. We help companies when they decide to recruit their first employee and beyond to put in place the HR / Legal foundations required for the success of the employee and the business. This helps to ensure that the business owner can get on with what they know best, their business with us giving them support when it comes to their team.”
Here are a view of our previous blogs written on the subject:
YOUR OUTSOURCED HUMAN RESOURCES DEPARTMENT.
For further information on any of the HR subjects we provide, please click the heading below: