PROCUREMENT HEADS BLOG

“Hiring demand is unlikely to slow anytime soon”

New statistics from the Association of Professional Staffing Companies (APSCo) has shown that jobs spiked again in May, despite the increasing skills shortages across the hiring market.

The data, provided by Bullhorn, revealed that contractor jobs spiked 34% between May 2021 and May 2022, while permanent roles increased 25% year-on-year. Month-on-month comparisons also showed an uptick in job numbers between April and May 2022, up 16% for permanent and 19% for contract roles.

Furthermore, there was a 44% uptick in the number of permanent placements last month compared to the same period last year.

With the Office for National Statistics (ONS) revealing that there are now more jobs than people unemployed, this increase will have a detrimental impact upon already dwindling resources in the UK.

In this environment, APSCo has warned that the OECD’s economic forecasts could be further impacted.

Ann Swain, CEO of APSCo said, “The UK’s labour market is reaching breaking point and this latest data suggests hiring demand is unlikely to slow anytime soon, which is a concern given the latest OECD forecast.

“In recent months we’ve seen record-breaking vacancy numbers reported by the ONS and the first-ever instance where there are more jobs than people out of work.

“In a post-Brexit and Covid-hit economy, the strength of the labour market will be paramount to the UK’s ability to become and remain a global powerhouse. If this is to be achieved, the country’s policymakers need to implement an international approach and bolster global opportunities. This includes creating an attractive entry route into the country for highly skilled self-employed professionals and refocusing international trade deals on skills, the workforce and the mutual recognition of services and professional qualifications as well as tariffs and goods.”

Rupert Gaster, Founder and Managing Director of Procurement Heads, said, “Clearly, the oft-spoken about talent shortage is not going away – with all sectors experiencing huge demand for talent at a time when there’s an ongoing skills shortage.

“From a procurement and supply chain perspective, professionals in this space, who have played critical roles in organisations’ response to the pandemic, have never been in higher demand.

“If you add the issues created by a global pandemic to ongoing Brexit issues and the geopolitical situation, the demand for top talent isn’t going to lessen anytime soon.

“So, my advice to organisations looking to hire at the moment – regardless of what sector they operate within – is simple, firstly partner with trusted advisors to support your recruitment needs, organisations that can tap into their extensive passive talent networks that would be otherwise unavailable for a conversation about a role.

“Secondly, collaborate openly with your trusted advisors and be available at every stage of the process to ensure timeframes are managed successfully.

“Finally, if you are set to make an offer, don’t lose out on the ideal candidate – it is a candidate’s market out there, with talent in multiple processes. If you want to secure your desired hire, make them a compelling and complete offer.”

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Rupert Gaster