Candidate Shortages
Key Findings
- Permanent placements decline
- Temporary billings rise
- Vacancy growth increases
- Pay pressures remain elevated
- Labour supply continues to fall
Summary
A more cautious approach to staff hiring was evident at the start of 2023 amid ongoing economic uncertainty and cost pressures. Recruitment efforts were also dampened by ongoing candidate shortages, though there were further signs of the downturn in labour supply easing in January and February.
More encouragingly, overall vacancy growth has picked up.
Permanent placements fall for fourth straight month
Uncertainty over the economic outlook and a hesitancy to commit to new permanent hires slowed permanent recruitment at the start of 2023 and continues through February and into March.
Permanent staff appointments fell during this period with firms leaning on temporary workers to fill vacancies. Temp billings rose at the quickest rate since last September, albeit mildly overall.
Pay Pressure Remains Elevated
Pay pressures remained historically strong, as firms responded to greater competition for staff and the rising cost of living by increasing salaries and wages.
Growth of demand for staff picks up slightly
Temp vacancies rose at a stronger rate than permanent staff demand, but there was an improvement in growth for the latter and a slowdown for the former.