The REC Jobs Report highlights January 2023

According to the latest KPMG and REC UK Report on Jobs survey, greater economic uncertainty, pressure on clients’ budgets and low candidate numbers all simultaneously dampened hiring activity towards the end of 2022.

 

In summary:

– Permanent placements fell for the third consecutive month and at the quickest rate since 2021

– Billings for temporary staff rose only modestly

– Growth of demand for workers cooled, with overall vacancies rising at the slowest rate since February 2021

– The downturn in candidate availability continued to ease

– Starting salaries and temp wages both climbed higher in response to the cost of living and low candidate supply, however, rates of pay growth were the softest seen for 20 months

 

Permanent staff appointments fall at a quicker pace

At the end of 2022, the number of people placed into permanent jobs fell for the third month running. This is due to economic uncertainty as well as pressure on budgets, which subsequently weighed on recruitment plans.

This rate of reduction was the quickest seen since January 2021, when the third national lockdown affected hiring.

On the other hand, temp billings expanded further in December, but the rate of growth remained modest overall.

 

The overall growth of vacancies slips to a 22-month low

Driven by a weaker upturn in permanent staff demand, the overall rate of vacancy growth weakened for the ninth consecutive month, and was the slowest seen since the current period of recovery commenced in February 2021. Temp vacancies expanded at a slightly quicker pace.

 

Candidate supply falls at softest pace since March 2021

More people became cautious about seeking new roles in the current climate, which dampened candidate availability. This, combined with an already tight labour market drove further drops in the supply of both permanent and temporary labour.

 

Starting pay increases at a slower, but still strong rate

Pay pressures continued to soften towards the end of 2022, but in terms of historical data, they remained strong.

Both starting salary rates and temp pay growth rates hit their lowest since April 2021.

Where higher rates of pay were reported, this was frequently linked to competition for scarce staff on top of the rising cost of living.

 

Sector Variations

– The demand for staff remained stronger across the private sector than the public sector at the end of 2022

– The steepest overall increase in vacancies was seen for temporary workers in the private sector

– The slowest increase in vacancies was reported for permanent public sector staff

– Construction saw the quickest drop in vacancies

Meet The Team

It’s our superb team that continue to drive the success of Workforce…

Work @ Workforce

We invest in our people and provide excellent rewards and perks. Experience in recruitment is not necessarily a must-have. The right attitude is what matters most. Find out more…

News & Insights

Catch up with our news and industry insights here…

Hidden Labour Exploitation

We work closely with all our customers, the police and other organisations to ensure we identify and protect people who may be being exploited and/or trafficked.  Find out more…

About Us

Staffing & Recruitment solutions across the UK.

Every year we recruit and provide thousands of first-rate, productive workers to over 700 businesses – from SMEs to PLCs – covering a wide variety of positions from manual handling to C-Suite level.

Find out more

Industrial & Warehouse

For all your Warehouse & Factory roles including: Warehouse Operatives, Pickers & Packers, Assembly Operatives, General Labour, FLT drivers etc…

Driving & Logistics

For all your Driving roles including: Class 1, Class 2, 7.5 tonne, van drivers, delivery drivers etc…

Manufacturing & Engineering

For all your Manufacturing roles including: Welders, Press Brake Operators, Paint Sprayers, Mechanical Assemblers, CNC Operators etc…

Food

Manufacturing

For Food Manufacturing roles including: Production Operatives, Food Packers, Filling Operatives, Machine Operators, Quality Supervisors etc…

Professional

Services

For Professional roles inc: Accounts & Finance, Call Centre, Customer Service, Legal, HR, Manufacturing, Engineers, Quality, Sales, Supply Chain etc…

More

More

More

More

More

Flexible Temporary Staffing

Fill and flex your workforce almost instantly with daily demand…

Onsite Managed Workforce

Combine Flexible Temp Staffing with a dedicated WF account team onsite…

Flat Fee Staffing

Recruit perm staff at a flat-fee per-hire, with staged payments for reduced risk…

iHire - Hiring power

Hiring power to make your recruiting easier, quicker and cost (much!) less…

Permanent Recruitment

Search, Retained and Contingent recruitment for first-class hires at all levels…

Brilliant Recruitment

Can-do workforce solutions. For whatever happens.

Our mission is to deliver real, demonstrable cost savings to employers while ensuring you always have the quantity and quality of staff you need at any one time – from a single individual to hundreds of people. 

Find out more

Case studies

Recent examples of how we help you cut Cost-Per-Hire and Time-To-Hire…

Employer reviews

See what other employers say about working with Workforce…

Working with you

You can expect the highest level of results AND customer service…

Online inductions

Avoid staff downtime by letting us help new starts hit the ground running…

eLearning Courses

Our online training courses that boost your workforce productivity…

Staffing Platform

Total workforce management. Zero aggravation.

Fill and flex your shifts in seconds using our unique “Staffing Platform” recruitment tech and “Shftr” our integrated mobile app for workers.  Managing every aspect of your workforce has never been so easy.

Find out more

Get in touch

Back to News & Insights

More News & Insights