17 Mar How does the UK job market look in 2023?
For Red Chilli Recruitment, it looks very different. The past few years have seen rapid development, post-pandemic, with the advent of new technologies such as Artificial Intelligence, automation, and the Internet of Things. In short, the job market is undergoing rapid transformation and as an organisation seeking talent, you need to keep up to date with market trends.
The UK job market remains stable, though we find unfilled job vacancies are historically high in 2023, with the most sought-after talent and skills hard to come by across many different industries. In addition, 47% of workers will be looking for a new job in 2023, which will inevitably mean that businesses and organisations will need to pull out all the stops when it comes to finding and securing their talent.
Salary is still one of the main motivators, and candidate confidence is high despite the fears about the recession. But while many workers find themselves in an increasingly competitive job market, their potential employers face challenges filling job roles with the right people. As a result, people are seeking better conditions, better career development opportunities, wellbeing packages and increased flexibility, amongst other things.
“Even with 43% of those in this latest survey indicating their moves are primarily motivated by the desire for better pay, throwing money at the problem is not enough. Successful attraction and retention strategies should also factor in tangible career development opportunities, wellbeing packages and increased flexibility amongst others.” – Matt Weston, Senior Managing Director – UK&I, BeNeLux & UAE at Robert Half
Market influences have shown that organisations open to adjusting remuneration packages in light of the cost-of-living crisis are looked upon favourably. Salaries have increased at the fastest rate in over two decades. To get ahead in the job market, workers – and those recruiting them – must be prepared to adapt skills and knowledge to respond to the constantly changing circumstances of our age. As a result, there is more opportunity for people than you might expect, despite the volatile times we are experiencing in the UK and beyond.
One of the most significant changes in the job market is the growth of the ‘gig economy’. This has seen a marked increase in freelance and contract work, with more people choosing to work for themselves rather than a company. This has positively affected the job market, giving employees greater autonomy after the pandemic, with the chance to find work that suits their skills and interests. Another change is the rise of remote working, with more people working from home or other locations. This has opened up a range of opportunities for people to work in different industries and more imaginative locations – and the job market has responded positively, enabling businesses to tap into a wider talent pool.
Finally, the UK job market will continue to be heavily influenced by Brexit, whether we like it or not. With the UK’s departure from the European Union, there will still be many changes from the post-Brexit fallout in the labour market.
It is vital for organisations looking for talent to keep abreast of these developments to read the intentions of their potential recruits. Regular engagement with market trends in a fast-changing employment environment is more important than ever.
Some statistics
More than 50% of recruitment agency leaders predict a revenue increase of 1-25% in 2023, with over 60% of recruitment agencies planning to increase their number of recruiters due to the upward movement in the UK job market.
So, while the statistics around job vacancies declining suggest hiring is slowing down, the labour market remains strong. Data from the ONS (Office for National Statistics) also noted that even though the number of vacancies fell, open positions are still very high.
While it may feel like a dry read, the ONS has some interesting facts and stats worth checking out. It backs up our belief that the job market is resilient and in need of key skills in the market more than ever: https://bit.ly/3KONukU
Recruitment agencies are still at the heart of the job market
Even with all these changes and moving elements, the future of the recruitment agency is secure. Reputable agencies are experts at finding and placing candidates and liaising with the organisations seeking that talent. They continue to have their fingers on the pulse of the job market in every specialist industry. Specialist recruiters use the latest technology and business intelligence, sourcing talented and skilled candidates in half the time.
Recruiters in these agencies are experts at what they do. It’s their job to ensure the people they put forward for employment are the right people, not just because their skills match the job description but also because they completely understand the industry and market they’re recruiting for. They know an organisation’s culture, values, ethos, and how they plan for their business and employees’ future.
Some key questions businesses could be asking agencies:
- What experience do you have when recruiting in our industry?
- How do you work, and what can I expect from you as an agency?
- How do you find – and engage with – top talent?
- How do you engage with leaders and our HR departments seeking talent in our industry?
- Do you already have an active pool of suitable talent?
- What kind of support, training and development do you offer your candidates? Do you work with candidates throughout their careers that reflect what we’re seeking within our industry?
- How – and why – are you different from other agencies that recruit in the industry within our industry and area of expertise?
- What are your terms and conditions?
We’re here to help industry grow
We count ourselves lucky that we can call ourselves experts in our field of recruitment, remaining genuinely and passionately committed to finding the right opportunities for all our clients – because we stay at the centre of each of our specialisms. We know full well how tough it can be out there for both organisations and candidates.
For more insights about how the marketplace is working – and how we see trends developing in 2023, look out for our next blog. In addition, we’ll discuss how you can gain insight into the marketplace, using that knowledge to ensure you’re at the centre of these trends in the UK job market in 2023 – and beyond.
Visit us at www.redchillirecruitment/ or contact us at https://redchillirecruitment.com/contact/ to learn more about how we can help you understand how the technologies industry is developing and how we can help you find the right candidates for your organisation.
For more interesting statistics, click the link below for more information about the employment market via gov.uk.