The latest job market research has revealed that the demand for new staff is currently increasing from businesses in almost every sector. However, being successful in filling the influx of new vacancies is proving more of a challenge. Reasons for this primarily stem from the declining number of candidates available in the marketplace at the moment, despite starting salaries rising at a rate not witnessed for 19 months.

A shrinking talent pool.

As mentioned, the number of available candidates to appropriately fill positions has deteriorated, affecting placements in both permanent and temporary roles. Despite the fall in permanent candidates softening slightly in June compared to May, the amount of temporary labour decreased at its quickest rate in 18 months. Consequently, finding suitable candidates to fill roles is becoming tougher, leading to a more drawn out hiring process.

Placements are still being made.

However, despite the smaller talent pool in which to choose from, the number of permanent placements rose sharply in June. There were also more placements made in temporary roles, even though the growth was not as steep as seen in the previous month. These increases were witnessed throughout the UK, with Scotland recording the biggest growth in both permanent and temporary hires. The Midlands also experienced high growth in permanent placements, with the weakest recordings being found in London.

In addition to this, the growth in hourly pay rates have also quickened over the past month, as businesses look to attract the top talent. Even though this should be seen as a positive development, it does highlight the lack of qualified candidates. The increase in starting salaries and hourly pay is being implemented with the intention of attracting passive candidates enough for them to consider leaving their current role. Such strategies highlight the scale of the mismatch between job vacancies and suitable talent being experienced in the marketplace currently.

The full story can be found here: RecruitmentAgencyNow