In May 2022, the Bank of England put out a warning about a potential oncoming recession, predicting that GDP would fall throughout 2023 and inflation would continue to exceed the 2% target. This situation is calling people to question what the future of recruitment is if a recession does take hold. In this article, we will analyse how a potential recession could affect the recruitment sector for both employers and candidates.
As expected, a recession can create problems across the economy, which inevitably has an effect on the recruitment sector. The number of permanent job vacancies have already started to decline after a historic high at the beginning of 2022. Job vacancies are still relatively high, but they are not even close to keeping up with inflation. Unlike previous recessions, there is not mass unemployment, but people are still struggling due to the cost-of-living crisis and the weak increase of wages.
Furthermore, as we head towards a likely recession, there is not an equal spread across the UK. The South of England saw the largest decline in permanent staff vacancies, while London saw the smallest decline. The recruitment sector will see a move towards more temporary vacancies, which could be positive for some workers who are happy working in these temporary roles. In addition, some sectors are also predicted to not be so heavily affected by the recession including the transportation sector as they still have a shortage of workers since Brexit and the pandemic. Here at Recruitment Solutions, we have a variety of jobs available, both temporary and permanent, if you are looking for a job to start your 2023 right.
In conclusion, it is clear that this recession will create some problems in the recruitment sector, but the industry appears to be in a favourable position leading into the recession, which could help to cushion some of the negative impacts. Although permanent job vacancies may fall, temporary job vacancies are predicted to be relatively stable throughout 2023.
To find your next job, please call a member of the team on 01392 430800/07974 126489 or visit our website at www.rsuk.biz.