Recruitment Trends In 2024

Recruitment candidates now have much bigger expectations surrounding sustainability, to the extent that many would accept a lower salary to work for a more green-conscious employer. The jobs market is also ‘loosening’ with more candidates looking for jobs but more vacancies coming onto the market, largely as a result of a more stable economy. These are key findings from the Total Jobs Hiring Trends Index, which has taken a forensic deep dive into the recruitment industry as it stands at the end of quarter 2 (Q2) of 2024.

The Hiring Trends Index surveyed 1000 HR decision-makers and 3000 part/full-time employees in the UK over the months of May and June 2024. It has resulted in a comprehensive overview of where the recruitment sector is and gives us a solid indication of what will happen over the remainder of 2024.

Stable economy leads to loosening of jobs market

While the UK economy is already picking up in 2024, this is expected to continue over the second half of the year. This is combined with falling inflation and the removal of any political uncertainty following Labour’s General Election win in July. This has all resulted in rising confidence in the jobs market. Despite the many troubles of the previous Government, wage growth was strong and unemployment was at 4.4%, a historically low figure. At the end of Q2 in 2024 there were 904,000 job vacancies in the UK, which is above pre-pandemic levels. Labour shortages and inflation have led to the wage growth experienced, although this is largely seen in manual sectors, rather than office-based jobs. There is also an increased demand for recruits in the hospitality sector.

The headline findings of the Hiring Trends Index present a good overview of where the recruitment sector currently is:

• 85% of businesses recruited people in Q2 2024
• The average length it took to hire an employee was 4.9 weeks, although this increases to over five weeks for larger businesses of over 250 employees
• 77% of businesses were confident of hiring the people they needed in quarter 3 2024. This had increased from 74% in Q2
• However, 61% of recruiters were struggling to find the right candidates to fill vacancies, and 54% said they were finding it hard to meet the salary expectations of candidates
• The industries where there was confidence of finding the right candidates included IT and telecoms, retail, manufacturing, finance/accounting, legal and media
• There is high competition for candidates, with 42% saying they have received, on average, four job opportunities in Q2

Confidence in the recruitment sector can be seen in the fact that one quarter of the people questioned were actively looking for a new job, while 54% were open to opportunities. This backs up the suggestion that the recruitment market is ‘loosening’ and people are likely to find it easier to be matched to the jobs they are seeking.

Rising sustainability expectations from candidates and employers

The biggest recruitment shift seen in the first half of 2024 is relating to expectations surrounding sustainability. The green jobs market is continuing to grow, with 20% more green jobs existing than in 2020, such as in the renewable energies sector. The Labour Government’s ambitious green plans will only accelerate this, as the UK works to achieve its 2050 targets of achieving net zero emissions. In order to achieve this it is estimated that there is a shortage of 200,000 workers in ‘green jobs’ which need to be filled by 2030.

This skills shortage is sure to see a change in recruitment and training practices from this point, but another important factor is how candidates are now prioritising the green credentials of an employer. Candidates are far more tuned into sustainability commitments and importance, and understand their own environmental responsibilities and the climate impacts businesses can have. To emphasise this, 71% of those questioned were interested in green jobs and working for a sustainability-minded employer, while 43% would accept a lower salary to work for a sustainability-minded employer, and 67% would switch to a green employer if there were suitable training opportunities. In addition to this there is a much higher expectation that employers offer more green initiatives and incentives, such as car-sharing, cycle to work and electric car schemes.

Overall, there is a very positive outlook amongst both recruiters and candidates for the remainder of 2024, while still retaining caution over vacancy and candidate suitability and maintaining an awareness of the challenges facing the jobs market, particularly under a new UK Government.

At CSA recruitment we have a wealth of experience across various industry sectors and we understand the demands and challenges employers face when it comes to finding the right candidates. If you want to take the stress out of recruiting the right people to your business, contact us to find out how we can help.