After a hectic Christmas, what type of dry January will you be facing?
Many of us might be considering a ‘Dry January’ following a boozy festive period, bedecked with Christmas parties, late nights and one glass of prosecco too many.
The latest labour market statistics have found that the number in work has fallen for the second month running. The data, from the Office for National Statistics (ONS), which examined job rates from August-October 2017, found a significant 56,000 drop in employment, which added to the number of people classed as ‘economically inactive’ – meaning they are not seeking or are available to work. Effectively further evaporating the candidate pool.
Furthermore, average earnings aren’t keeping up pace with inflation, with pay in real terms dropping by 0.4% - the eighth month in a row of decline - Sky News reports.
Recruitment & Employment Confederation Chief Executive, Kevin Green, believes that recruiters will now have to operate in a ‘candidate scarce’ market: “Employers will need to continue to be resilient in 2018 as candidates are getting scarcer.
“Our data shows that some hirers are combatting skills shortages by increasing starting salaries to attract candidates, but this isn’t translating to a pay-rise for the wider workforce – inflation is still outstripping pay growth by a long way.”
He added that with more people from the EU leaving the country and fewer arriving to work, it’s getting harder for employers to secure the number of people they need to fill roles. “If they can’t find candidates, they won’t be able to meet demand, which means there is a risk that they won’t be able to grow and could even end up downsizing, relocating or closing down,” he warned.
At Lloyd Barnes we strongly urge businesses to develop a robust hiring strategy for 2018, work in true partnership with your preferred recruitment agency and when you are ready to hire, move fast, move smart and be flexible. Otherwise your Christmas hangover won’t be the only headache you could be dealing with.