Daily News

View All News

UK labour demand edges down in December as market slows

12 January 2024

Active job postings across the UK in December 2023 fell both year-on-year and month-on-month, according to the latest Recruitment & Employment Confederation (REC) and Lightcast Labour Market Tracker.

Despite falls relative to previous years, demand overall is still substantial. The Tracker showed 1,710,492 active job postings in December 2023, a 24.3% decrease from the month before (November 2023) and a 32% decrease from December 2022 (2,516,973). There were 2.8 million active vacancies in the month of December 2021.

December is always a quiet month for recruitment, as Christmas hiring is generally completed and clients tend to postpone new activity into January, so the fall in posting numbers from November is no surprise, according to the REC. By contrast, the like-for-like comparison with the previous two Decembers, which came amid the post-pandemic sugar rush of hiring, emphasise the sequential slowing of the market in 2023.

Occupations with notable increases in adverts in December 2023 include prison service officers (34.7%), authors, writers, and translators (10.3%), air transport operatives (4%) and speech and language therapists (3.0%). Psychotherapists and cognitive behavioural therapists (-3.7%), dental nurses (-6.4%) and childminders (-6.6%) follow with the softest declines in job postings this month.

Manual labour roles were not particularly in demand during the December timeframe, with painters and decorators (-41.1%), packers, bottlers, canners and fillers (-40.5%) and road transport drivers (-40.2%) showing the lowest growth in job adverts.

When looking at the top ten counties/unitary authorities for growth in active job postings, five were based in London. This suggests a more encouraging trend for the capital’s job market and economy than reported in alternative recent jobs surveys.

Of the bottom ten areas with the lowest growth in active job postings, five were in Scotland and four were in Northern Ireland. This chimes with the REC/KPMG Scotland Report on Jobs which found that overall demand for staff weakened further, with both permanent and temp vacancies declining markedly in December.

Across the UK, Tower Hamlets (-7.7%), Haringey and Islington (-11.0%) and Orkney Islands (-12.0%) had the softest decline in job postings when compared to November 2023. Belfast (-34.2%), Fermanagh and Omagh (-34.3%) and East Dunbartonshire (-41.5%) all accounted for the sharpest decline in job postings.

REC Chief Executive Neil Carberry said, “It is little surprise that jobs postings were muted in December because employers tend to have completed Christmas hiring by November, and then postpone new activity until the new year.”

“The labour market weakened across 2023, especially for permanent roles,” Carberry continued. “But it did so from a very high base. Comparing with previous Decembers, we can see a significant fall from the levels of activity in previous post-pandemic festive periods. It is important to remember that activity levels overall remain relatively high by comparison to pre-pandemic norms, and unemployment is low. There remains opportunity out there for jobseekers, especially in growing sectors.”

“Anecdote and client survey data suggests there is hope for more growth in the market this year. As the economy grows, businesses will be looking to government to use the Spring Budget to unlock labour supply with action from welfare-to-work programmes to skills reform and a more sensible debate on immigration,” Carberry said.