According to the most recent reports, firms in the UK experienced a drop in permanent and contract job openings in December due to ongoing economic uncertainties.
Research from the APSCo (Association of Professional Staffing Companies) and Bullhorn shows that between December 2021 and December 2022, permanent employment openings decreased by 15%, while contract openings decreased by 22%.
Even while the decline was anticipated, the drop in salaries creates a more worrisome picture at a time when there is a severe lack of skills. According to the study, the average permanent salaries decreased in December 2022, down 6% from the corresponding time in 2021.
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Although this decline in pay reflects the economic unpredictability the nation has experienced, households will be concerned because staff in the UK are currently experiencing a crisis with their cost of living. To recruit and keep the highly qualified workers they want both now, and after the UK economy improves, businesses should consider offering bigger compensation packages, according to APSCo.
December has historically been a slower month for hiring activity, according to Ann Swain, Global CEO of APSCo. Although there has undoubtedly been a drop in hiring, the decline in average permanent salaries is a more problematic matter.
Additional Read: UK – Vacancies see a monthly decline but remain significantly above pre-covid levels: Apsco.
Especially for highly qualified workers, the labor market is still under strain, according to Swain. Businesses and recruiters should be cautious about assuming the labor market has returned to the employer’s favor. With adequate compensation packages, enterprises’ access to essential resources will become more unrestricted. The power is still in the hands of the candidates.
If you want to know more latest updates about the UK, you can go through the blogs on our website, Dynamic Staffing Services, and in case of any query, contact us at +91-11-40410000 or email us at enquiry@dss-hr.com.
