Job Market Report January 2022
Provided by CV Screen
The number of candidates who are actively looking for work continues to fall, this alongside the continual high demand for staff is creating upward pressure on wages.
Wage inflation across all three sectors that CV Screen recruit (IT, Finance and Marketing) is being seen, with typical increases of 10 to 15% being seen for candidates who are active in the market. Our experience is that the gap between supply and demand is enabling candidates to secure multiple job offers which is putting upward pressure on salaries as employers compete for talent.
The IT Jobs market dipped slightly in Q4 from the heights seen in the Autumn. This is an expected seasonal trend and levels of demand are still exceeding the supply of candidates who are active within the jobs market.
Finance Jobs remain around 20% below pre pandemic levels, but there is an expectation that this will rise dramatically in Q1 2022 as traditionally this is one of the busiest quarters of the Year within the Finance Sector.
The pandemic affected the marketing sector hardest of the three sectors that CV Screen cover. This saw demand full dramatically in the summer of 2020, but over the last 12 months the sector has recovered and the demand for marketing staff has rebounded dramatically over the same period.
The availability of staff is defined as the number of active candidates on the CV databases to which CV Screen subscribes.
Across all three of CV Screen’s sectors (IT, Finance and Marketing) there has been a dramatic fall in the availability of staff who are actively looking for work. This has resulted in a drop of 50% in the candidates who are active in the marketplace compared to pre pandemic levels.
The drop in the number of candidates actively looking for work can be attributed to several factors. One of the major contributors is that many candidates now have a better work/life balance because of the increased ability to work from home. This has resulted in one of the top reasons for changing roles (reducing commuting time) as being rendered largely redundant since the pandemic hit.
Many candidates are also expressing that they are reluctant to change roles as joining a new company remotely is challenging. There is interestingly anecdotal evidence that organisations are finding it difficult to onboard new members of their team which is resulting in some candidates moving more frequently.
The added and significant factor of Brexit reducing the talent pool is another factor which is causing upward pressure on wages which is discussed in the commentary below.
We anticipate that 2022 will see a continuation of the acute skills shortage that is seen throughout the UK Jobs market. This will continue to create upward pressure on wages as employers are forced to compete for talent by increasing starting salaries.
We anticipate that employers will be left with no alternative but to review the salaries of existing members of staff to retain their services. This is likely to be driven by rising inflation which is been driven by the Energy crisis in the UK, which will see employees looking at how to pay for the rising cost of living.
For those candidates who are willing to dip their toes in the Jobs market, there is significant choice available in what is the most candidate driven market we have experienced in our 22 years of trading. Whether there is the appetite out there to change roles remains to be seen, but our expectation is that the skills shortage will remain acute for the foreseeable future.
If you have any questions relating to the report, please contact us on 0345 200 8170.