How Inflation is Affecting the Jobs Market

over 1 year ago Carys Pegrum
Shutterstock 1772911730

​History has been made in the UK job market, as for the first time since records began 50 years ago, there are now more job vacancies than unemployed people in the UK. Why is this good news for candidates? It means that there are plenty of opportunities out there ready to be snapped up, however with the rising rate of inflation, wages are not matching up. It’s time for employers to look at their own strategies to ensure that they are attracting the right talent, because let’s face it there is plenty of competition out there at the moment.

Between January and March the unemployment rate fell to 3.7% as the number of openings reached a new high of 1.3 million. With much on the market employees need to take note that with rising prices - especially for food and fuel - candidates want more than the basics and a salary that matches the demands of the economy and their skillset. A demanding time on both sides. Despite pay rising by 4.2% in these months, this amount still doesn’t meet the cost of living which rose to 7% in March.

It’s also worth noting that another record high has been reported in the amount of people moving from job to job, as they’re driven by higher salaries, better conditions and the incentive to be promoted in their field. This is according to the Office for National Statistics. Across the board from construction to healthcare and hospitality, the plethora of jobs available is down to fewer EU workers, less un-employed looking for work, the impact of the war in Ukraine and the ongoing effects of the pandemic. From young people entering the jobs market for the first time and enticing people who have taken early retirement back into employment, how do we retain and attract the right candidates?

At Omega we have seen that it’s no longer a case of potential employees selling themselves to business, it’s more a fact that employers are asking ‘what do our future employees want?’ They’re pulling together an attractive package that will entice individuals. As many have become accustomed to working from home during the pandemic, candidates are wanting a flexible approach to hybrid working to maximise the work-life balance. It’s important for businesses to be agile and have the infrastructure in place to be able to support this. Whether that’s laptops so that employees can work from home or working different hours to the usual 9-5 to fit around family life, there are plenty of ways to accommodate. This ultimately helps to increase employee happiness and loyalty.

Companies are always wanting to hire the best talent. For businesses it’s important to suss out what your competitors are offering, as well as looking at bonuses and incentives such as gym memberships, health insurance, extra courses and training, as well as other schemes to maximise the offering on top of the advertised salary.

Recruiters such as Omega will play a key role in supporting candidates find the perfect role for them whilst also helping with the recovery of employment rates to pre-pandemic level. This is achieved with government activation schemes to assist employers with attracting the right people, from all backgrounds, get back into work.

At Omega we provide a wide range of temporary, contract and permanent opportunities, in partnership with leading employers nationwide. We’ll work with you to find that perfect role to get you back on the ladder. Speak to our team on 01453 827333 to see how we can help you or visit our website to view our latest opportunities in the Engineering, Aerospace, Automotive, Electronics, Defence, Scientific, Oil & Gas, Logistics and Manufacturing sectors.