The UK job market continues to cool with job vacancies declining for the 27th consecutive period, according to the latest figures from the Office for National Statistics (ONS). This sustained decrease marks a significant shift from the post-pandemic hiring boom and signals a more cautious approach from employers amidst economic uncertainty.
The total number of vacancies in July to September 2024 fell to 841,000, a 3.8% drop from the previous quarter and a 14.4% decrease compared to the same period last year. This decline was widespread across various sectors, with mining and quarrying, and real estate activities experiencing the most significant drops. Notably, the human health and social work sector also saw a substantial reduction in vacancies, despite remaining above pre-pandemic levels.
This continued decline in vacancies suggests a more cautious approach from employers. Economic uncertainty, coupled with rising costs, is likely leading businesses to reassess their hiring needs as are expected tax hikes in the upcoming October Budget.
Impact on industries and careers:
Human health and social work: Despite the recent fall, this sector remains a strong area for job seekers, with vacancies still significantly above pre-pandemic levels. However, the decrease may signal a slowdown in the rapid growth experienced in recent years.
Mining and quarrying, and real estate: These sectors have been hit particularly hard, indicating a potential downturn in these industries. Professionals in these fields may face increased competition for fewer available positions.
Wholesale and retail trade: Repair of motor vehicles and motorcycles in particular continues to struggle, with vacancies remaining below pre-pandemic levels. This suggests ongoing challenges within these industries, potentially influenced by factors like changing consumer habits and supply chain disruptions.
What does this mean for job seekers?
While the overall picture may seem concerning, it’s important to remember that the job market remains relatively strong compared to pre-pandemic levels. However, job seekers may need to adjust their expectations and strategies:
Increased competition: With fewer vacancies available, competition for roles is likely to be more intense. Job seekers need to ensure their skills and experience are up-to-date and effectively showcased in their applications.
Sector-specific opportunities: While some sectors are experiencing declines, others, like professional, scientific and technical activities, continue to show growth. Job seekers should research different industries and identify areas with potential opportunities.
Upskilling and reskilling: With the changing demands of the labour market, it’s crucial for individuals to invest in their skills and consider reskilling options to remain competitive.
The cost of living crisis is not going away
According to survey by Ciphr, the cost of living crisis continues to significantly impact UK workers, with many struggling to make ends meet and forced to make difficult choices.
“Around one in four UK workers (23%) have run out of money before their ‘payday’ (or equivalent) at least once this year,” the survey found. Younger workers are particularly affected, with those under 34 most likely to take on loans and move in with family to save money.
The pressure of the crisis is forcing many employees to work while sick, with “over half (55%) of 18-24-year-olds” working through illness to avoid losing wages.
“As these findings show, navigating the high cost of living continues to be incredibly challenging, with many people still struggling financially and many others feeling compelled to work through illness due to the financial impact of taking time off,” says Claire Williams, chief people and operations officer at Ciphr.
To cope, many are cutting household spending, insurance coverage, and even pension contributions. Some are seeking higher-paying roles, taking on extra hours, or starting side gigs.
