Blog Layout

Share Article

November 16, 2022

ONS data continues to indicate record vacancies

The ONS issued its latest Labour Market Analysis, on 15 November. Appointments take a look at a summary of the findings which show that despite another fall in the number of vacancies during the previous quarter they remain at a record high.


This means it’s a good time to be looking for work. However, on the flip side many businesses continue to struggle to recruit the right talent to their business and the competition to attract applicants in the labour marketing remains tough.


Neil Carberry, Chief Executive of the Recruitment and Employment Confederation (REC), commenting on the latest figures said:


“..statistics in the labour market suggest that the exceptional growth in demand for new workers we’ve seen through the year is at an end. But hiring activity is still at a very high level and shortages are still a key problem for firms. Pressure to raise pay for existing staff, as shown in today’s data, and caution about the economic outlook, are likely to be contributing factors in hirers becoming a little more cautious.


“Despite increased levels of employer caution, vacancies are still at historically high levels – it is still a good time to be looking for work. Unemployment remains at record lows, while employment is still below February 2020 levels. That means economic inactivity – those out of work and not looking for it – is a growing challenge, with the ONS figures showing it has hit a new high.


“From healthcare to childcare to flexible working, businesses and Governments need to be working together to boost labour supply so people can earn more in the midst of high inflation and create the capacity for the economy to grow. Growth is the only way we can fund public services and keep taxation low over the long term, and we’ll be looking for a clear plan from the Chancellor at the Autumn Statement on Thursday.”


UK employment rate remains around 75.5%


The UK employment rate for July to September 2022 was 75.5%, largely unchanged on the previous quarter and 1.1 percentage points lower than before the coronavirus (COVID-19) pandemic (December 2019 to February 2020). Employment for the West Midlands in the labour market report is slightly lower at just over 74%. Over the latest three-month period, the number of employees decreased, while self-employed workers increased.


The most timely estimate of payrolled employees for October 2022 shows another monthly increase, up 74,000 on the revised September 2022 figures, to a record 29.8 million.


The unemployment rate for July to September 2022 decreased by 0.2 percentage points on the quarter to 3.6%. The number of people unemployed for all duration categories decreased in the latest three-month period. The labour market report shows the West Midlands region saw the highest unemployment rate estimate in the UK of 4.7%.


Long-term sickness continues to add to economic inactivity


The economic inactivity rate increased by 0.2 percentage points on the quarter to 21.6% in July to September 2022. This figure reflects the number of people who are not actively seeking work. During the latest three-month period, the increase in economic inactivity was driven by those who are long-term sick, who increased to a record high. A recent survey from the ONS showed that over two-thirds of those becoming long-term sick in 2021 and 2022 were already economically inactive for another reason in the three months before the study.


Labour Market report indicates number of vacancies falls but remains at historically high levels


In August to October 2022, the estimated number of vacancies fell by 46,000 on the quarter to 1,225,000. Despite four consecutive quarterly falls, the number of vacancies remain at historically high levels in the labour market. An increasing number of businesses are now reporting holding back recruitment because of economic pressures.


Pay growth continues against a backdrop of inflation


Growth in average total pay (including bonuses) was 6.0% and growth in regular pay (excluding bonuses) was 5.7% among employees in July to September 2022. This is the strongest growth in regular pay seen outside of the coronavirus pandemic period.


Average regular pay growth for the private sector was 6.6% in July to September 2022, and 2.2% for the public sector. Outside of the height of the coronavirus pandemic period, this is the largest growth seen for the private sector and the largest difference between the private sector and public sector.


In real terms (adjusted for inflation) over the year, total pay fell by 2.6% and regular pay fell by 2.7%. This is slightly smaller than the record fall in real regular pay seen in April to June 2022 (3.0%). However, it remains among the largest falls in growth, since comparable records began in 2001.


This month the ONS reinstated the monthly labour disputes statistics. In September 2022, there were 205,000 working days lost to labour disputes.


The figures show that the recruitment market remains challenging with many firms looking at alternative ways to attract talent and make their packages more attractive. You can download our latest salary guide to see if your pay and rewards are competitive in the local recruitment market.


If you would like support with your recruitment, get in touch, call us on 01782 338787. Or simply post your job.

By Kerry Bonfiglio-Bains March 31, 2025
Struggling with no-shows, salary negotiations, or slow hiring? Discover real-world solutions to the biggest recruitment dilemmas
By Kerry Bonfiglio-Bains March 31, 2025
Is your business ready?
By Kerry Bonfiglio-Bains March 31, 2025
From April 6th 2025 there will be significant shift in employer National Insurance (NI) contributions, with the rate increasing by 1.2 percentage points to 15%, and a lowered earnings threshold now starting at £5,000 (down from £9,100). These adjustments could lead to higher payroll expenses for mid-sized and larger businesses, affecting hiring strategies and budgeting in 2025 and beyond. Key Details of the Change Rate Increase: The NI contribution rate for employers rises to 15%. Lower Earnings Threshold: Employers will now pay NI on earnings starting at £5,000, significantly reducing the exemption range. This change is intended to boost government revenue but will likely increase costs for businesses with lower-wage roles. Employment Allowance Adjustments: The Employment Allowance, which offers some relief on NI costs, increases to £10,500. This provides a cushion for many small businesses, particularly those employing fewer staff. How These Changes Impact Staffing and Recruitment Businesses may see these shifts reflected in higher staffing costs, particularly for mid-sized and larger firms with significant payrolls. These added expenses might influence decisions on wage increases, hiring plans, and even the type of roles businesses choose to fill. Employers should prepare for potential shifts in their budget allocations to maintain competitiveness while managing increased contributions. Preparing Your Business Planning ahead is essential. Key steps might include: Calculating projected costs to budget for the changes Evaluating workforce needs and considering the potential impact on hiring strategies Maximising allowances by confirming eligibility for the updated Employment Allowance We will be updating our blog in the coming days with a detailed breakdown and calculations, so visit us again soon!
The national minimum wage & national living wage is a legal right which covers almost all UK workers
By Kerry Bonfiglio-Bains March 31, 2025
The national minimum wage & national living wage is a legal right which covers almost all UK workers
By Kerry Bonfiglio-Bains March 6, 2025
Stay ahead in a shifting job market with our latest insights into salary expectations, hiring challenges, and employee benefits in Staffordshire.
By Kerry Bonfiglio-Bains February 5, 2025
Why Taking 5 Minutes for Our Salary Survey Could Save You Thousands
By Kerry Bonfiglio-Bains January 15, 2025
The Outlook for HR in 2025: Trends, Challenges, and Opportunities for Senior HR Professionals
By Kerry Bonfiglio-Bains January 15, 2025
In the fast-paced world of business, the ability to secure and retain top leadership talent can make all the difference between stagnation and exponential growth. For SMEs in particular, the right leadership hires are not just crucial for filling vacancies—they are key to shaping the strategic vision, driving operational efficiency, and laying a foundation for long-term success. As we look ahead to 2025, let's delve deeper into why selecting the right leadership is more important than ever and how you can strategically approach these critical hires. Why Leadership is the Cornerstone of Business Success Leadership roles such as Finance Directors, HR Business Partners, and Operations Managers are not just functional—they are transformative. Over the years, we’ve seen firsthand how the right leaders can unlock business potential and propel organizations forward. However, the wrong hire can lead to disruption and inefficiency. Here's how these roles contribute to sustainable growth: Finance Directors (FDs): A Finance Director is far more than just a custodian of the company’s finances. They provide essential strategic insights that guide decision-making and drive growth. By identifying cost-saving opportunities, optimizing cash flow, and ensuring sound financial health, a strong FD plays a pivotal role in the profitability and scalability of a business. HR Business Partners (HRBPs): In an era where talent is one of the most valuable assets, HRBPs are instrumental in aligning human resource strategies with overarching business goals. They not only develop retention strategies but also cultivate a company culture that attracts and retains top talent. A dynamic HRBP ensures your workforce is engaged, motivated, and ready to contribute to business success. Operations Managers: The heart of operational excellence, Operations Managers optimize workflows, manage resources efficiently, and ensure that day-to-day operations run smoothly. Their impact is felt directly through enhanced productivity, cost savings, and improved customer satisfaction—all of which are integral to the growth trajectory of your business. The Strategic Impact of Leadership The right leadership hires provide more than just functional expertise—they are game-changers. Here's how they create lasting value: Strategic Vision: Great leaders inject fresh perspectives and innovative ideas into the business, helping to navigate challenges, identify new opportunities, and position the company for future success. Increased Efficiency: Proven leaders streamline operations, reduce waste, and optimize processes, which leads to higher productivity and a more cost-effective business model. Stronger Teams: Exceptional leaders inspire and attract top talent. They foster collaboration, empower teams, and build a culture of high performance that drives business outcomes. Risk Mitigation: A strong leadership team proactively addresses challenges before they escalate. They are adept at implementing contingency plans and creating stability during periods of uncertainty. The High Cost of a Bad Hire In our extensive experience working with SMEs, we’ve seen firsthand how damaging poor hiring decisions can be. Not only do you risk impacting team morale and productivity, but you also face significant financial consequences. Research shows that a bad hire can cost as much as three times the employee’s annual salary, considering recruitment costs, training, and lost productivity. For SMEs, these costs can be crippling, making it imperative to approach leadership recruitment with precision and strategy. How to Secure the Right Leadership Talent 1. Define Your Needs with Precision: Before embarking on the recruitment process, clearly outline the specific skills, experience, and qualities required for the role. This ensures the candidate will not only be a technical fit but also align with your business goals and values. 2. Prioritize Cultural Fit: Leadership is about influence, and a leader who shares your company’s values will integrate seamlessly into your organization. They will inspire your team and create a harmonious work environment conducive to growth. 3. Leverage a Confidential Recruitment Partner: Engaging with a specialist recruitment consultancy that has a deep understanding of leadership roles ensures access to a broader, more diverse talent pool. Confidentiality in this process is essential, particularly when you are hiring for high-stakes leadership positions. 4. Use Data to Inform Your Decisions: Utilize salary benchmarking and competency assessments to make data-driven hiring decisions. These tools ensure your offers are competitive, attracting the best talent while mitigating the risk of overpaying. 5. Invest in Onboarding: A successful leadership hire starts with a structured onboarding process that enables the new leader to quickly adapt and deliver results. A robust onboarding strategy sets the stage for long-term success. Real Success Stories from Strategic Leadership Hires At Appointments Personnel, we have had the privilege of helping over 100 SMEs secure leadership talent in the past year alone. The results have been nothing short of transformational: A Finance Director helped a growing manufacturing business cut costs by 15%, improving profitability through strategic budgeting and financial oversight. An HR Business Partner implemented a company-wide retention strategy that reduced turnover by 30%, saving the business significant recruitment costs. An Operations Manager overhauled logistics and operational processes, reducing delivery times by 20% and significantly boosting customer satisfaction. Additionally, we’ve witnessed how having an expert second opinion during the hiring process can make a game-changing difference. One of our clients almost overlooked an exceptional Finance Director candidate due to an internal review misstep. With our insight, they hired the candidate, who went on to increase revenue by 25% within the first year. The Power of Confidential Recruitment When it comes to leadership hires, confidentiality isn’t just a matter of discretion—it’s a competitive advantage. Whether you’re replacing a key role or expanding your leadership team, maintaining confidentiality ensures that sensitive information is protected and business continuity is preserved. Emma and I understand the importance of this better than anyone, having worked on confidential roles ranging from Finance Directors to HR Business Partners and Operations Managers. With our bespoke, confidential recruitment services, you gain a trusted partner committed to sourcing the leadership talent that will drive your business to new heights in 2025 and beyond. Contact Emma Bonfiglio to book a confidential meeting - Emma@appointmentspersonnel.co.uk
A sign that says will i get paid if i can 't get into work.
By Kerry Bonfiglio-Bains January 9, 2025
If you can't get to work because of the snow, it may reduce your pay as you may be forced to take unpaid leave.
By Kerry Bonfiglio-Bains January 6, 2025
Think of your recruitment strategy like your car before a long journey—without regular checks, you risk breakdowns at the most inconvenient times.
More Posts
Share by: