Job Market Report - CV Screen October 2018 TUESDAY, 09 OCTOBER 2018
Rise in starting salaries as candidate supply weakens
A recent report by Markit Economics highlights the tightening of the UK Labour market with a rise in starting salaries and a decrease in candidate supply increasingly prevalent.
CV Screen is one of hundreds of recruiters who provide a monthly update to Markit, highlighting our experience of the jobs market. This data is then collated and provides the Bank of England, economists, HR specialists and recruitment professionals with critical insight into the UK employment market.
The Latest Report by Markit highlights shifts in the market which are likely to have a significant impact on economic policy in the next 12 months.
- Starting salaries rise sharply amid steep reduction in candidate supply.
- Permanent placements expand at a slightly weaker pace.
- Vacancy growth softens to a near two-year low but remains strong.
Job Applications Drop by 24%
CV Screen has also undertaken a study of the number of applications we receive per vacancy, comparing the first nine months of 2018 to the same period in 2017.
Our findings are that application numbers have dropped by 24% on a like for like basis, meaning that we are now receiving an average of 52 applicants per vacancy for roles posted on our websites and the leading job boards.
We are finding that with uncertainty surrounding the economic impact of Brexit, candidates are more fearful of moving jobs. This uncertainty has led to the reduction in candidate supply of active candidates (as highlighted by the 24% drop in applicants), but employers are becoming increasingly desperate to attract talent, which is resulting in salary hikes to entice passive candidates to move.
We believe that this will continue into 2019 as organisations seek to secure the best talent to help them deliver on their business objectives.
The concern for the Bank of England will be that when wage inflation starts creeping up, they’d naturally look to increase interest rates, however, with Brexit looming, they’ll not want to react too early for fear of destabilising an already fragile economy.
If you’d like to discuss the jobs market, or understand how CV Screen is able to attract unique talent for your roles, then please don’t hesitate to give us a call on 0345 200 8170.