The engineering sector has continued to feel the impact of economic uncertainty and skills shortages with vacancies and applications plummeting, according to new research from the Association of Professional Staffing Companies (APSCo) and Broadbean Technology.

The data showed that that permanent jobs fell in December, down 37% month-on-month, with contract vacancies also dropping 33%. While this is indicative of a seasonal decline in hiring, the levels were the lowest vacancy numbers reported over the 12-month period.

Although a drop in vacancies will also impact applications, the number of people actively applying for engineering jobs saw a far great decline last month, with permanent applications down 55%. With the level of contract applications also dropping 57%, APSCo has warned of a growing skills gap in the sector.

Ann Swain, Global CEO of APSCo, said, “While we expect to see vacancies and, subsequently applications, decline towards the end of the year, the falls reported in engineering are concerning. The UK has battled skills shortages in the sector for some time and while a slowdown in recruitment eases some of the pressures on talent pools, the drop in applications, particularly in contract roles, suggests there is a tightening of the labour market. The first quarter of 2024 will be a telling time for the strength of engineering recruitment and we expect to see demand slowly pick up once again.”

Earlier this week APSCo and Broadbean also reported that job applications and vacancies declined in the IT sector in December.