The war for talent is poised to intensify
Staffing Stream
The war for talent is poised to intensify

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It has been a challenging month for the UK and the labor market. We’ve seen reports from the Office for National Statistics (ONS) that unemployment has hit a two-year high having remained at lower-levels since the pandemic. When we look at our data, we can see that vacancies have continued on a downward trend, dropping 20% between May and June this year. However, the fall in applications was starker, with the number of people applying for a job falling by 58% between May and June.
Logistics, IT and admin sectors hit hardest by skills shortages and economic uncertainty
Looking at the data in more detail, the sectors that appear to be hardest hit by falling jobs and applications include logistics, administration and IT. In the logistics and supply chain sector, jobs fell just 14% between May and June, below the national average. However, in comparison, the number of people applying for roles in the sector dropped by a staggering 62%. Given the long-standing challenges that the sector has faced in sourcing workers since the pandemic, this sharp fall suggests logistics and supply chain could be facing another skills shortage in the coming months.
The administration and secretarial remit is seemingly facing a similar scenario, with jobs down 18% while applications fell 57%. In the IT sector, vacancies fell by 23% between May and June, which is broadly in line with national averages. However, the decline in candidates actively applying for jobs was far greater, dropping 52% in the same time frame.
A tough landscape, but opportunities ahead
While a fall in jobs is expected — particularly during an economic slump and following the highs of the post-pandemic years — the sharp decline in applications is of particular concern for recruitment businesses and employers. This is likely to intensify with indications of economic recovery on the horizon.
With skills shortages continuing to grow, the war for talent is poised to intensify when the UK market bounces back. While there may be fewer jobs at the moment, recruitment teams need to be able to find new and innovative ways to source critical skills — including identifying the right tools to elevate and optimize their hiring activity.
One example is artificial intelligence, which is revolutionizing workflows and processes for many hiring teams. The ability to get in front of the right candidate at the right time is becoming more critical and cannot be achieved without the appropriate tools.
Automating and optimizing your job adverts through AI-powered tools will ensure ads get to the right place based on real-time insights enabling recruiters to engage with core candidates quickly and effectively. Recruiters that leverage innovative tools will be best positioned to compete for candidates once economic conditions improve.