Appointments drop at much weaker pace in July
KEY POINTS
Notably softer falls in permanent placements
Redundancies lead to near-record rise in candidate supply…
… resulting in further downward pressure on starting pay
Hiring activity falls at much slower pace
The latest survey showed that recruitment activity moved closer to stabilisation in July, with both permanent placements and temporary billings declining at much softer rates than in the prior four months. Nonetheless, reductions remained marked
overall amid reports that the coronavirus disease 2019 (COVID-19) pandemic continued to weigh on clients’ hiring decisions.
Redundancies lead to sharper rise in staff supply
Recruitment consultancies signalled a steeper increase in overall candidate availability at the start of the third quarter, driven largely by redundancies stemming from the pandemic.
Furthermore, the supply of temporary workers rose at the fastest rate in over two decades of data collection, while the upturn in permanent labour supply was the second-sharpest on record.
Starting pay continues to fall markedly
A combination of rising staff supply and subdued demand for workers added further downward pressure on starting pay in July. Starting salaries fell markedly in the latest survey period, despite rates of decline easing since June.
Commentary
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 – and help bring confidence back to the UK workforce.There are far fewer vacancies in the market than before March, and more people looking for jobs.
