Hiring at a high but skills shortages could hamper post pandemic recovery

by Susie Hughes at 11:17 12/07/21 (News on Business)

For the fourth consecutive month, the professional recruitment sector is seeing big increases in both month on month and year-on-year vacancy and placement figures as the UK approaches the ‘next normal’ and businesses put hiring firmly back on the agenda.

According to data from agency group APSCo, there is a 14 per cent month on month uptick in contract roles, with permanent vacancies up 10 per cent. Year on year the data continued to show huge spikes with rises of 90 per cent and 72 per cent respectively. Advertisement This growth in hiring is in keeping with other reports from organisations such as the CIPD which, in its latest Labour Market Outlook, pointed to both employer optimism in terms of hiring intentions, but also major skills shortages suggesting that niche professional recruitment firms will be more important than ever during the recovery. The data also reveals that sales revenue for the recruitment sector showed substantial month-on-month growth, up 12% across both permanent and contract placements and huge spikes year-on-year – up 102 per cent and 77 per cent respectively, demonstrating the huge part professional recruitment firms have in helping businesses contend with skills shortages. Ann Swain from APSCo said: “The recovery trend is clearly continuing – and it is apparent that the recruitment sector has a major part to play in that recovery as proved by some of the financial results we are seeing from our larger members. Page Group has recently reported increased gross profit per fee earner in Q2 this year compared with the same periods in both 2019 (up two per cent) and 2020 (up 94 per cent), while Robert Walters’ latest trading update saw a 31 per cent increase in gross profit compared to the same period in 2020. "There is also the question of ongoing skills shortages – in fact just last month some of the UK’s biggest tech companies urged the Government to take action to address a shortage in digital skills which could hold back the post pandemic recovery. This all points to a very busy time ahead for the professional recruitment sector!” Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2021

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