The state of employment in 2023

As we approach the end of 2023, let’s take a closer look at the job scene in the UK. It’s a mix of challenges and opportunities for those seeking jobs and companies navigating the changing workforce. Using the latest labour market reports from the Office for National Statistics, we’ll explore the state of employment in 2023, offering insights for job seekers and employers on the current state of affairs and what lies ahead for 2024.

Vacancies and Pay Trends

In the period from August to October 2023, the UK experienced a decline in the number of job vacancies for the 16th consecutive quarter, with a significant decrease of 58,000 vacancies, bringing the total to 957,000. This trend was pervasive across 16 of the 18 industry sectors, indicating a widespread impact.

On the brighter side, annual growth in regular pay (excluding bonuses) in Great Britain remained robust at 7.7% in July to September 2023. While this represents a slight dip from previous periods, it remains one of the highest annual growth rates since 2001. Employees’ average total pay, including bonuses, saw a growth rate of 7.9%, influenced by one-off payments in the Civil Service during July and August 2023.

In real terms, accounting for inflation using the Consumer Prices Index including owner-occupier’s housing costs (CPIH), total pay rose by 1.4%, and regular pay increased by 1.3% on a yearly basis.

 

Strikes and Labour Disputes

The UK experienced 229,000 working days lost due to strikes and labour disputes in September 2023, with the health and social work and education sectors being the most affected. However, the initial report of a decrease of 11,000 payrolled employees in September was revised to an increase of 32,000, showcasing resilience and adaptability in the job market. For October 2023, the estimated number of payrolled employees increased by 33,000 to 30.2 million.

Global Employment Trends

According to insights from the PWC Global Workplace Hopes and Fears survey 2023, ‘The Great Resignation’ continues globally, with 26% of employees considering changing jobs in the next year (up from 19% last year). Reasons include feeling overworked (44%), financial struggles (38%), and a higher likelihood among Gen Z (35%).

Job satisfaction, company culture, and inclusion play a crucial role. Among those likely to change jobs, only 47% find their current roles fulfilling, compared to 57% of those planning to stay. Additionally, those contemplating a job change are less likely to feel they can be themselves at work (51% vs. 59%).

Financial Strain and Pay Expectations

The global economic slowdown and inflation are leaving employees cash-strapped. The proportion of workers with money left at the end of the month dropped from 47% to 38%. One in five workers holds multiple jobs, with 69% doing so to meet financial needs, more common among Gen Z (30%) and ethnic minorities (28%).

The economic squeeze is prompting more workers to demand higher pay, with the percentage planning to ask for an increase rising from 35% to 42% year on year. Among those facing financial struggles, this number rises to 46%.

Final Thoughts

In conclusion, as we navigate the changing employment landscape in 2023, both businesses and job seekers need to stay flexible. Here at NPP, we continue to strive to provide tailored recruitment solutions in sectors such as construction, sales, and beyond, and are always aligned with the evolving workforce. Together, we can tackle challenges, adapt to changes, and pave the way for a resilient and prosperous future.