UK Economy Shows Signs of Recovery as Recruitment Challenges Persist
The UK economy is on the path to recovery, with expectations of improvement in the second half of the year driven by falling inflation and the resolution of political uncertainties. Despite these positive economic indicators, the recruitment landscape remains challenging.
According to a TotalJobs survey, the search for the right talent took an average of 4.9 weeks in Q2, mirroring the previous quarter's timeline. Larger organizations (250-999 employees) experienced a slightly longer hiring process at 5 weeks, while very large businesses (1,000+ employees) faced the longest delays, averaging 5.5 weeks. Consequently, over half (52%) of recruiters reported struggling with time pressures to fill roles.
The top hiring challenges have remained consistent, with recruiters citing difficulties in finding the right talent (61%), candidates with the right skills (60%), and meeting salary expectations (54%). Although the labour market has been loosening with more job seekers, high vacancy numbers mean candidates have their pick of opportunities. In Q2, over two-fifths (42%) of workers were approached with job offers, receiving an average of four opportunities each.
A quarter of workers are actively looking for new jobs, with 54% open to new opportunities. When considering a job, the most important factors for workers are work-life balance (96%), job security (94%), paid holiday and time-off allowances (93%), compensation, and engaging job content (both 92%).
However, securing the right job is not easy. The average job search takes 4 months (15.7 weeks), with 86% of workers facing challenges such as low salary offers (30%), high competition for positions (23%), and limited openings in their desired job types (21%). Despite these hurdles, over half (53%) of workers feel confident they will find the right job within the next three months, and 56% are optimistic about negotiating their desired salary.
Retention is also closely linked to work-life balance, as 94% of workers would stay with their current employer if their work-life balance improved. This indicates that employers focusing on enhancing work-life balance may see better retention rates.
The road to economic recovery is clear, but addressing these recruitment challenges will be key for sustained growth.
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