October 2024 UK Labour Market Report: Increased Candidate Availability Eases Salary Inflation Pressure
Stay informed about the latest developments in the UK labour market with the KPMG and REC's UK Report on Jobs, featuring in-depth insights from recruitment consultancies like Redline Group. This comprehensive monthly report highlights the key dynamics shaping the UK workforce. Below are the critical findings from September 2024 survey data.
Key Highlights from October 2024 Report:
- Permanent staff pay growth falls for third consecutive month.
- Both permanent and temporary/contract vacancies declined at modest rates.
- Staff availability continued to rise steeply, though at the slowest pace since February.
Market Overview
The September report paints a picture of a jobs market waiting for clearer signals. Neil Carberry, REC Chief Executive, commented: “This is a picture of a jobs market waiting for a signal. Recruiters report that projects in client businesses are ready to go, but confidence is not yet high enough to push the button. The market for permanent jobs declined in September but more slowly than in the month before, while the temporary/contractor hiring market was more resilient and grew in some places.”
Global Manufacturing Impact:
Manufacturing activity worldwide has declined for the first time this year. The eurozone experienced the sharpest drop, with Germany leading the downturn. Meanwhile, China's production growth stalled, and the rest of Asia also slowed. However, nations like India, Brazil, Spain, and the UK saw faster growth compared to other major economies. (Source: J.P.Morgan Global Manufacturing PMI)
Candidate Availability, Vacancies, and Salary Trends:
According to the Office for National Statistics (ONS), there were 857,000 job vacancies in the UK, down by 140,000 compared to last year, but still 61,000 above pre-pandemic levels.
While temporary billings declined overall, certain regions, such as the Midlands, saw a slight increase in demand for contract/temporary workers.
For the 19th consecutive month, the availability of both permanent and temporary staff continued to rise in September, driven by increasing redundancies and reduced hiring demand. This surge in candidate availability has helped curb salary inflation, with only moderate wage growth reported as a result of the cooler market.
Despite a general decline in staff demand, Engineering continued to see growth in both permanent and contract roles, highlighting the persistence of skills shortages. Critical areas include:
- Electrical, Electronics, Mechanical Design, Hardware, and Manufacturing Engineering
- Software Development, Front-End, Full-Stack, AI, and IT Support
- Data Specialists and Cybersecurity professionals
Future Outlook:
As the UK awaits the upcoming government Budget, there is hope that policies aimed at boosting confidence in business will follow. Areas such as taxation, infrastructure investment, and employment law reform could inspire a resurgence in hiring once the economic landscape becomes clearer.
Jon Holt, Chief Executive and Senior Partner at KPMG UK, emphasised:
“The slowing of hiring activity seen in September is to be expected as businesses apply the brakes on recruitment ahead of the Budget and wait for clarity on future taxation, business, and economic policy. The Government needs to continue to give chief execs confidence in the UK’s macroeconomic conditions and the country’s route to stronger growth.”
Redline Group changes lives every day, building world-class teams for technology companies. We continue to be one of the UK’s most trusted Electronics and High Technology recruitment specialists for professional Contract, Permanent, and Executive positions. With four decades of experience our enthusiastic, knowledge-led people create trusted recruitment solutions. Redline is perfectly positioned to offer advice about futureproofing your permanent, contract and interim needs in the technology sector.
For more information about this month's report, contact David Collins on DCollins@RedlineGroup.com or call him at 01582 878804.