Figures released today by totaljobs.com reveal that jobseekers are facing the toughest job market conditions ever recorded, with average number of applications at a 22-month high of 18 per job. There was a small increase (1%) in jobs posted in Q3 but this is offset by a substantial rise of 15% in applications, as those without jobs are forced to make more applications for jobs they would not ordinarily apply for. Competition is most intense within sectors such as office administration as well as customer service, peaking at an average of 31 and 30 applications per job respectively.
The totaljobs Barometer provides one of the most comprehensive representations of supply and demand in the UK job market. Based on the actual behaviour of 2.8 million jobseekers each month, today’s figures show how UK recruitment has fared in the nine months to September as well as providing insight into how the labour market is set to fare following this month’s spending review. The Barometer has run for 22 months, since January 2009, and today’s figures mark an all time peak in the number of applications per job.
John Salt, Director, totaljobs.com commented on the figures:
“The slow growth in the number of jobs available points to structural unemployment issues setting in for the long term. Although this month’s ONS figures show the number of unemployed remains fairly stagnant, jobseekers are becoming more desperate and as a result are applying for more jobs – thus driving up competition and perhaps applying to sectors they might not usually have applied to in the past.”
The long term view
One year after the jobs market hit rock bottom, with 34% fewer jobs available compared to today, sectors that saw the biggest cut to jobs at the start of the downturn are showing clear signs of recovery. Sectors such as retail, customer services, property and travel have seen the biggest increases in jobs available compared to the same period in 2009 – increasing by 34%, 58%, 34% and 49% respectively. This has led to a direct impact on the competitiveness of the sectors, with customer services and travel already charting a decrease in the number of applications per job.
John Salt continues:
“The statistics are painting a picture of the beginnings of a recovery within the labour market, with industries such as banking and marketing set to follow this recovery cycle in the coming months. However, as we move into the autumn and we gain better clarification of Government spending plans there is a degree of uncertainty on whether this could lead to a double-dip.”
Sector breakdown
Although many sectors are beginning to recover, vacancies in the public sector have decreased dramatically. Jobseekers in this sector continue to suffer – with a decrease in jobs available in Q3 within education (-13%), health and nursing (-8%), public sector services (-7%) and social services (-6%). Compared to the number of jobs available over the same period in 2009, the social services sector has been hit the hardest with a 70% drop in jobs, alongside health and nursing which also saw a 48% fall.
Management consultancy is the sector that poses the greatest concern for private sector jobseekers. A 14% drop in available jobs in Q3 compared to Q2 2010 is further exacerbated by a dramatic 81% increase in applications over the same period. Conversely, jobseekers looking for employment in retail should feel confident: an 8% rise in jobs available in Q3 is likely to be followed by further opportunities in Q4 as the sector ramps up for Christmas.
Regional winners and losers
The research shows that London continues to be one of the most competitive locations to secure a job in the country, with 11% increase in applications in Q3 and only a 1% increase in jobs posted. Jobseekers in East Anglia have the least competition with an average of just nine applications per job.
The beginnings of an East / West divide predicted by Totaljobs.com in the last quarter continue. A less favourable performance in the North West may indicate the beginnings of how public sector job losses are set to bite, alongside the South West, which both saw a 6% and 2% drop in jobs available. Conversely, the North East and East Midlands saw a 6% and 2% increase in jobs posted, compared to the previous quarter. Finally, continuing its six-month bounce back, after a 31% fall in jobs posted, Scotland continues to show signs of improvement with 24% more jobs than in Q2 2010.
