- Q3 record jobs outlook of +35%
- London reports highest hiring demand, despite rising cost of living
- Acceleration of job hopping for higher salaries
Employers in the UK have ambitious plans to increase headcount at a record rate in the third quarter of 2022, according to the latest ManpowerGroup Employment.
Outlook Survey. Businesses are aggressively recruiting following the pandemic, yet still struggling to fill vacancies. The national Outlook has reached an all-time high of +35% - a 22-percentage point increase compared to Q3 2021.
Firms in the Banking, Finance, Insurance, and Property sectors continue to lead the way, with hiring intentions of +49%, jumping 14 percentage points since last quarter. Businesses in IT and Technology remain committed to their recruitment efforts, increasing seven percentage points to +49% in the next three months. Manufacturing employers are also at the employment forefront, with a hiring intent of +38%, up 27 percentage points year on year.
Continuing the positive theme, employers in London are the most optimistic this quarter with hiring confidence jumping 10 percentage points since the last quarter, to +41%, fueled by the positive hiring intent of the Banking and Finance sector, IT and Tech.
The survey is based on responses from 2,030 UK employers and asks if they intend to hire additional workers, maintain current headcount, or reduce the size of their workforces in the coming quarter (July to September 2022). It is the most comprehensive, forward-looking employment survey of its kind and is used as a key economic indicator by both the Bank of England and UK Government.
Chris Gray, UK Director at ManpowerGroup, says: “These record hiring plans demonstrate the continuation of an employment trend, which sees businesses keeping their feet firmly on the gas, despite the familiar challenges with the UK labour market. Despite a shrinking workforce and with a large proportion of inactive workers, employers are still keen to recruit fresh talent to help them deliver their services, and to surf the wave of growth for as long as possible.
“We are seeing an active labour force confident enough to switch employers in the search for higher salaries, across both permanent and temporary categories. This is being driven by the rising cost of living and the need to chase higher wages to combat a dwindling disposable income. Demand for staff still outstrips supply, so the choice for candidates remains plentiful.
“On the other hand, we are seeing businesses work hard to bring in new talent but struggling to retain existing employees. Companies find themselves caught between a rock and hard place, in an effort to strike a balance between hiring new talent and being mindful of the needs and pressures felt by their existing employees.”
Finally, employers in the Hospitality sector seem ready for summer, with a drop of nine percentage points to +25%. With travel and tourism back and fully open for business, employers will be balancing the automation of services and a lower headcount to manage the expected high demand now that travel restrictions have eased.