03 July 2024 – The UK jobs market has continued to decline, but employers are at risk of limiting future access to talent as remote working options and pay transparency declines. That’s according to new data from leading talent solutions provider, WilsonHCG.
The data – from Claro Analytics, WilsonHCG’s talent intelligence and labour market analytics platform – revealed that the UK jobs market is still on a downward trajectory, with job postings dropping 3.8% between May and June 2024. This continued decline is indicative of growing uncertainty in the UK economy during an election year and at a time when inflation has persistently remained high.
However, the data suggest that employers are moving away from offering information and perks that candidates have come to expect. Job postings for remote roles, for example, have fallen 20% in the fist half of the year. Salary transparency in job adverts has also dropped. While 75.1% of postings in June revealed remuneration details, this is 14% lower than the 12-month average.
According to WilsonHCG, while the labour market is slowing, the shortage of critical skills in most sectors has intensified. Consequently, those organisations that are moving away from remote working opportunities and pay transparency are at risk of damaging relationships with core talent pools.
Craig Sweeney, EVP of global strategic talent solutions at WilsonHCG, commented:
“The labour market may be slowing in terms of open jobs, however, it would be remiss to fall into the trap of thinking that this means there is a readily available pool of core talent and skills in the UK. There is a critical shortage of people with certain attributes that organisations in almost every sector need, including tech and AI skills. It is crucial that employers are considering what the longer-term impact of any changes to working preferences and salary details will have on their employer branding and future hiring intentions.
“It’s no secret that the UK economy has faced a difficult half of the year so far, but we are on the cusp of a bounce back. In fact, our US data is showing a steady increase in job availability in the States, with June’s figures standing at a six-month high. With the US market often acting as a bellwether for the UK, we could soon see a change of fortunes in recruitment. Having the resources to manage this eventual uptick is going to be key to success for companies of all sectors and sizes. However, there appears to be a worrying decline in core elements that candidates have come to expect. While the remote working debate may carry on for some time yet, the drop in salary transparency is something that does need to be addressed sooner rather than later. Competition for top talent is still high. We shouldn’t fall into a false sense of security as job postings fall, but rather take a more holistic look at the talent taxonomy we need and how that is secured.”
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