As economic uncertainty persists in the United Kingdom, employers are feeling the squeeze as incomes decline across the professional labour market.
If enterprises do not invest in talent now, they risk being at a competitive disadvantage once the recovery begins.
According to the most recent statistics from the Association of Professional Staffing Companies (APSCo), the trade association for the professional recruiting industry, this is the case.
Bullhorn, the global leader in software for the employment sector, provided the data that demonstrated a seasonal fall in hiring towards the end of last year.
Between December 2021 and December 2022, permanent job openings decreased by 15%, while contract job openings declined by 22%.
Despite the fact that this drop is predictable, it is the decline in compensation that is more worrisome during a period of widespread skill shortages.
According to APSCo statistics, average permanent salary decreased by 6% in December 2022 relative to the same month in 2021.
Despite the fact that this decline in wages is a reflection of the country’s economic instability, the fact that households in the United Kingdom are experiencing a cost-of-living crisis makes this a matter for concern.
According to APSCo, in order to recruit and keep the highly trained employees they need now and once the UK economy improves, firms must consider more comprehensive renumeration packages.
Ann Swain, Global CEO of APSCo comments: “December has long been a quieter month for recruitment activity.
“However, while there has certainly been a decline in hiring noted, the fall in average permanent salaries paints a more concerning picture.
“There is still significant pressure on the labour market, particularly for highly skilled professionals.
“Businesses and recruiters alike shouldn’t fall into the trap of believing the labour market has swung back in favour of the employer just yet.
“The power is still very much in the hands of the candidates, and without appropriate remuneration packages in place, access to crucial resources will become increasingly limited for firms.”