[UK 23/06/2023]Although the UK economy is expected to encounter difficulties in the future, the job market remains resilient based on the latest analysis from the global employment platform, Indeed.



Job Postings


The number of job postings in the UK has risen by 50 per cent above the pre-pandemic baseline as of December 9, 2022. The figure is a new high after the pandemic. Even with the cost of living crisis, many organizations are still looking to hire, indicating the job market's resilience.



Tight Labour Market


According to a recent report, the relationship between unemployed individuals and job openings, which is a way to measure how tight the job market is, remained at a near-record low of 1.0 from July to October 2022. Despite the economic downturn, the analysis from Indeed indicates that the job market could stay relatively tight compared to previous standards.



The Ratio of Unemployed per Job Vacancy


The Bank of England and the Office for Budgetary Responsibility (OBR) predict that if the relationship between economic growth and job vacancies observed after the 2008/9 financial crisis recurs, the ratio of unemployed people per job vacancy will not increase significantly from its current level.



Increased Economic Activity


The latest statistics from the ONS indicate that there has been an increase in economic activity among people aged 50-64. This age group was previously a significant reason for the reduction in the size of the labour force, resulting in a tighter job market. This increase in economic activity may indicate that the rising cost of living is encouraging some individuals to reconsider their plans.



Pay Disparity


The latest ONS pay data shows a significant wage growth gap between the private and public sectors. In the past year, private sector regular pay increased by 6.9 per cent, whereas public sector pay increased by 2.7 per cent. As a result, there has been a surge in the number of working days lost due to labour disputes in October - the highest since 2011. This is expected to rise during the winter as more strikes are planned across various public services.



Pay Growth vs Inflation


According to posted wage data on Indeed, none of the occupational categories is experiencing pay growth that meets the inflation rate of 9.3 per cent year-on-year on the CPIH measure and 10.7 per cent year-on-year on the CPI measure in November. This is happening as the cost of living crisis persists.

During the pandemic recovery phase, the labour market went through an unusual period, and now it is entering a new phase. It is hoped that the UK will handle this transition well and won't have as serious consequences as previous economic downturns.

About Triumph Consultants Limited


Triumph Consultants Ltd specializes in recruiting for the public sector and has over 20 years of experience. The agency places qualified candidates in temporary, interim, contract, and permanent positions within the public sector. It has worked with over 350 clients who trust it to fill their job vacancies. For more information, visit https://www.tclrec.com/.