KPMG and REC have recently released December’s edition of the UK Report on Jobs: National. This report looks at both the positive and negative trends in recruitment for all sectors, including Social Care, and how this relates to the current climate.

Please find below some of the key highlights from the report:

• Hiring activity continues to expand strongly amid robust demand for workers
• Starting salary inflation hits fresh series high
• Candidate availability drops at a slightly softer rate
• Permanent Placement Index increases from 66.8 in October to 69.2 in November
• Temporary Billings Index increases slightly from 60.9 in October to 61.0 in November

Commenting on the latest survey results, Claire Warnes, Partner and Head of Education, Skills and Productivity at KPMG: “The confidence of businesses to hire remains reassuringly robust. We’ve seen nine months of growth in permanent placements and rising vacancies for the past 10 months as the economy bounces back. The data points to a strong end to the year, but that hunger to expand could be tested as the jobs market becomes ever tighter. The pace of demand for workers is running far faster than supply can keep up with, which is draining an already diminished pool of available talent and feeding into inflationary pressures. The current trajectory is unsustainable in the long run for businesses and the wider economic recovery. The priority must be to replenish the workforce and ensure businesses can access the talent they need. That means equipping job seekers with the skills that employers and new industries are looking for, increasing labour market flexibility and improving transport links. In the meantime, businesses need to have one eye on cost pressures and the other on attracting and retaining talent – no easy feat given the intense jobs market. Many will be looking to the new year – a traditional time for job seekers to begin searching for new opportunities – to fill gaps in resource.”

Also commenting is Neil Carberry, Chief Exec of the REC: ” Today’s figures emphasise again how far we have come this year – it is certainly a great Christmas if you’re looking for a job. This is always the busiest part of the year for recruiters, but demand for new staff across the autumn has been exceptional. Because of this high demand, starting salaries and temp rates continue to rise, making it even more attractive to be looking for a new opportunity in 2022. Hiring companies will need to make sure they get their offer right – not just on pay – and take an inclusive approach if they are to avoid losing out. It’s too early to tell what the effect of the Omicron variant might be on the labour market – December may be slower than previous months as its effects feed through. Hospitality will be in the forefront of any changes as we approach the festive season, of course, and the impact of high inflation will also be felt as purses tighten in January. But the broader outlook is more positive for candidates, suggesting that the labour market will remain tight for some time to come. This will put a premium on skills development, and the flexibility to hire overseas when necessary. These two issues will be critical ones for the government to address next year – both levelling up and delivering a global Britain rely on them.”

Andrew Brindley, Director of AJ Recruitment, said: “Yet again it has been another strong month for job vacancies both temporary and permanent across all sectors, but especially in Health and Social Care. It is too soon to see if the recent new government restrictions will impact and soften this demand, as this time of year we often see this slow down for many sectors when it comes to recruitment, and as last year was so different it will be hard to predict how it will play out this year in the lead up to Christmas. What we have seen is an increase in demand so far for both temporary and permanent workers across all regions we work in, yet again. What is certain is that this is all putting pressure on inflation, the knock-on effect of increased wages and prices charged, 2022 is looking like it’s going to be as difficult a year as 2021 was.”

This report allows you to benchmark your business against the backdrop of the wider economy. I hope you find it useful to help you measure and understand where Social Care as a sector sits against the wider picture.

If you would like to discuss the findings in the above report, or about how we can collaborate, please let us know. To get in touch, email recruitment@ajrecruitment.com or call us on 03305 552233.

As a specialist, family-run recruitment business, we provide a proactive and consultative approach to recruitment within Social Care. We help organisations to target issues such as continuity of staffing, reducing spend where you have a high volume of agency usage and supporting those who have specific talent requirements or are in hard to fill locations. We can help with any immediate staffing requirements or longer-term recruitment projects to ultimately save you time and money on agency spend.

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