Labour Shortages Mean Job Postings Remain Stable Despite Economic Slowdown
As we have reported throughout 2022, job vacancies and postings have remained high due to labour shortages. This is despite the cost of living crisis and the economic slowdown. Moreover, new evidence highlights that this remains the case, and that the problems caused by labour shortages are likely to remain an issue for some time.
ONS Data
The Office for National Statistics (ONS) found back in May 2022 that the problem with labour shortages had become so acute, that the number of job vacancies exceeded the number of people available to fill them for the first time ever. The ONS report for May 2022 found that the number of job vacancies stood at 1,295,000. However, the number of people who were available to fill those positions, the unemployed, had fallen to 1,257,000. That mean’t that the number of job vacancies exceeded the number of unemployed by 38,000.
Whilst ONS data shows that the number of job vacancies peaked at a record 1,318,000 back in March 2022, and that this has now fallen back since then to 1,225,000 in November 2022, the number of job vacancies remains at near historically record levels. Accordingly, the problems caused by labour shortages remain dire.
The number of those who are unemployed now stands at 1,224,000 as at November 2022, which means that the number of vacancies still exceeds the number of people who are available to fill those positions by 1000, albeit that the number by which it exceeds it by has fallen by 37,000 since May 2022.
REC Data
Further evidence that the problems caused by labour shortages remains acute comes with the latest Labour Market Tracker, which is published by the Recruitment & Employment Confederation (REC) / Lightcast. The latest tracker report shows that during the week of the 14th - 20th November 2022, there were 216,257 new job postings and 1.4 million active job adverts.
The number of new job postings is just 17,946 lower than the 234,203 record peak reached during the week ending the 13th March 2022. Meanwhile, the total number of active job adverts peaked at a record 1,855,325 during the week ending the 24th July 2022. Accordingly, the fact that both the number of new job postings and the number of active job adverts remain at near records levels, highlights that the problems caused by labour shortages are unlikely to abate any time soon.
Reaction
Commenting upon the latest findings on labour shortages, the Chief Executive of the REC, Neil Carberry, states: "While the data fluctuates from week to week, new jobs postings have averaged about the same level through the year, suggesting a pattern of strong and stable demand. Despite a wider narrative of concern about the economy, this reflects feedback from recruiters across the country who are saying that shortages mean demand is remaining high even as growth diminishes. It is worth noting that some of the strength in today’s figures is seasonal, however, with demand up in retail ahead of Christmas, and energy ahead of the winter."
Over A Quarter Of Employees Find Their Payslips Incomprehensible
New research published by the payroll and HR solutions company, Zellis, has found that 28% of employees do not fully understand the information that is contained within their payslips, one of the principal problems being that there are "too many acronyms and technical terms."
Survey
Moreover, 71% of the employees surveyed stated that there was at least one issue that made it more difficult to comprehend their payslip than it otherwise should have been. Moreover:-
- 19% of respondents encountered issues in logging into a portal containing their payslips
- 27% of those surveyed stated that they lacked the ability and / or confidence to question the accuracy of their payslips
- 13% of respondents admitted that anxiety about their financial situation had put them in to a position where they acrtively avoided even looking at their payslips
Assessment of Findings
Commenting upon the findings, the Chief Innovation Officer at Zellis, Gethin Nadin, stated: "Financial wellbeing is ultimately about three things: having control over the money that comes in and goes out of your bank account, having the financial and emotional resilience to cope with the things that happen in our lives, and how we feel about the role money plays in our lives. Employers need to take a strategic and consistent approach to employees’ financial wellbeing, with a focus on driving the behavioural changes which are so critical for people to feel more confident and in control of their finances during this crisis."
