Reflex report that although there is ongoing demand in the technology jobs sector, there remains a serious labour and skills shortage. At the same time data released this week from the latest KPMG and REC UK Report on Jobs survey for the month of February 2023, compiled by S&P Global, showed that other recruitment activity remained dampened by lingering economic uncertainty and subsequent hesitancy around hiring. Notably, permanent placements fell for the fifth straight month, while contract/temp billings growth was mild overall. Candidate shortages also contributed to the slowdown in hiring activity, although the latest drop in labour supply was the softest seen for nearly two years. Vacancies data showed a relative improvement in growth of demand for staff, with a quicker rise in permanent vacancies which is reflected in the REC’s most recent Labour Market Tracker report noting new job adverts are at a 14-month high. The report also highlighted that pay pressures remained sharp overall, driven by the rising cost of living and the competition for scarce candidates and that actual permanent staff appointments fell for the fifth consecutive month. Reflex feels that the difficulties attracting and securing suitably skilled staff is a primary factor in this drop, but also that some clients are adopting a more cautious approach to staff hires due to ongoing economic uncertainty, and some candidates are taking a similarly cautious same approach and staying put.
