November 23, 2023
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Analysis & Commentary

Exploring the Recruitment Landscape of Q3 2023

November 23, 2023
|
Analysis & Commentary
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The Hiring Trends Index provides a comprehensive overview of the UK labour market, delving into the latest insights from the third quarter of 2023. This edition focuses on sustainability and green roles, analysing the dynamics of hiring, economic shifts, and the evolving preferences of both employers and candidates.

Key Insights from Q3 2023:

UK Employment Market Overview:

The employment market in the UK has experienced a gradual loosening throughout 2023, driven by an increase in the cost of living. Vacancies have consistently declined, dropping below the million mark for the first time in two years.

Unemployment reached 4.3%, exceeding the Bank of England's Q3 prediction. Employment levels, which were steadily rising until September, witnessed a decline according to the ONS data.

Inflation and Wages:

After fourteen consecutive rate hikes, the inflation rate is gradually decreasing. Wages in the UK have finally caught up with inflation, as indicated by the Hiring Trends Index Q3 results, demonstrating that businesses are still actively hiring, with few planning layoffs.

Recruitment Trends:

80% of businesses recruited in Q3 2023, remaining consistent with the previous quarter. Although vacancies have decreased, they still surpass pre-pandemic levels.

More businesses (36%) increased recruitment in Q3 compared to Q2. The average time to hire slightly increased from 5.8 weeks in Q2 to 6.1 weeks in Q3.

Outlook for Q4 2023:

Despite challenges in the labour market, 59% of businesses express confidence in recruiting the necessary personnel in Q4. Industries such as Transportation & Distribution, Real Estate, Medical & Health Services, Finance & Accounting, and IT & Telecoms are likely to increase hiring.

Sustainability and Green Jobs:

Demand for Green Roles:

The demand for green roles continues to rise, with a 677% increase between 2019 and 2023, as highlighted in the Hiring Trends Index Q3.

Over 1 in 5 (23%) businesses are actively increasing the number of green roles within their organizations.

Green Skills and Training:

Despite the rising demand, less than 1 in 5 (17%) businesses currently offer training for green skills. However, 18% are providing opportunities for employees to transition into green roles.

Industries such as Manufacturing, Construction, Finance & Accounting, IT & Telecoms, Education, Legal, and Transportation & Distribution show an increased focus on green skills and transitions.

ESG Implementation:

Over half (58%) of companies have implemented or are in the process of implementing a sustainability framework. Larger businesses (85%) are more likely to have or plan to introduce a sustainability framework.

Employee Expectations:

Sustainability Expectations:

A majority (82%) of employees want their employers to address climate change. Millennials and Gen Z show significant eco-consciousness.

An overwhelming majority (90%) believe their employer has a responsibility to contribute to environmental efforts.

Impact on Job Satisfaction:

Working for a sustainable business is a motivator for employees, with 4 in 5 candidates expressing higher job satisfaction when associated with a sustainable employer.

Greenwashing Awareness:

Candidates are cautious about greenwashing, with 52% stating they would not apply to a potential employer attempting to appear environmentally friendly. However, 72% of employers feel confident in communicating their environmental initiatives without being accused of greenwashing.

As businesses navigate the dynamic recruitment landscape, sustainability emerges as a critical factor in attracting and retaining talent. The increasing demand for green roles and skills, coupled with employee expectations for environmentally responsible practices, underscores the importance of incorporating sustainability into business strategies.

Methodology: Data presented in this article is derived from surveys conducted by YouGov Plc. The HR decision-maker sample included 1,011 participants, with fieldwork conducted between September 21 and October 1, 2023. The candidate survey sample, exploring sentiments toward employers and sustainability, involved 2,027 respondents and was conducted by Totaljobs between April 6 and April 14, 2023. All figures are weighted and representative of business size.