Job Market Report
Provided by CV Screen
What’s happening to demand?
Finance & Accountancy
We have seen a softening in the Jobs Market over the last 3 months (Q3 to Q4 of 2022), with demand falling across all sectors (by an average of 17%). At the same time, there has been an increase in the number of candidates actively looking for work.
As the UK begins to experience a mild recession, we are still seeing a high level of demand for staff, so although there has been a 17% drop in demand, it should be noted that earlier in 2022 there were a record number of job roles being advertised in the UK.
During the same time period, we have seen a modest increase in the number of candidates seeking work (around 5%). Our experience shows that a large number of these candidates are looking for an increase in salary (or an increased number of days working from home) to address the cost of living crisis that is gripping the UK.
Demand for IT Staff
The demand for candidates within the Tech sector continues to fall. The number of IT vacancies being advertised was at a historical high in Q1 2022, but the market has cooled as the economy begins to fall into a mild recession. The demand for IT staff is still high and we would anticipate higher levels at the beginning of 2023 as there is typically a New Year bounce in the jobs market.
Demand for Finance Staff
The number of job advertisements for Accountancy & Finance staff fell in Q4 2022 by 15%. However, CV Screen are still experiencing high demand, especially for candidates with experience of working within Practice.
The Accountancy & Finance sector is also the industry where we are seeing less and less willingness of candidates looking to change jobs.
Demand for Marketing Staff
The pandemic dramatically affected the marketing sector, with a dramatic fall in demand. It was also the sector to bounce back the quickest, with consistently high demand seen since Q2 2021.
We have seen demand drop quite dramatically in Q4 2022 (22%) and it will be interesting to see if the typical New Year bounce is seen in the marketing industry.
Availability of Staff
The availability of staff is defined as the number of active candidates on the CV databases to which CV Screen subscribes.
Across all three of CV Screen’s sectors (IT, Finance and Marketing) there has been a dramatic fall in the availability of staff who are actively looking for work. This has resulted in a 57% decrease in the number of candidates who are actively seeking work in comparison to pre pandemic levels.
The graph above dramatically shows how for the last 12/18 months there has been a real reluctance of candidates to change roles.
This is partly due to candidates choosing job security and loyalty out of the back of the pandemic – why risk changing job when you couldn’t be sure what was going to happen next. Secondly, home working has been a massive factor for many who fear that changing jobs may well see them having to return to the office and the dreaded commute. The improved work/life balance has been the top reason for people staying with their current employer.
Finally, the candidate availability index has also been impacted by Brexit which has caused a significant reduction in the UK workforce – it is no surprise that we are seeing Wage Inflation off of the back of all of these factors.
We anticipate that 2023 will see a modest increase in the number of candidates seeking a new role. This will be off the back of the need to seek a higher salary to offset the cost of living crisis.
Our experience suggests that with the jobs market cooling somewhat, that increases in salary of 20%+ that were seen in the first half of 2022 are less likely to be seen.
With the well documented industrial action in the Public Sector, it will be interesting to see whether this drives more candidates to search for new roles.
Many employers in the Private Sector have already reviewed the salaries of existing members of staff to ensure they retain their services, this is perhaps one reason why we’re not seeing an influx of candidates onto the jobs market, with staff retention being more critical than ever.
Recent reports suggest that over 500,000 candidates have left the UK workforce since the beginning of the pandemic, it is clear that although the economy has stalled, that the high demand for staff is unlikely to go away.