The state of employment in 2022

Moving on from the pandemic and being thrust into a nationwide cost of living crisis, the twists and turns of post covid living continue to prove problematic across the UK. But how does this leave the state of Employment for 2022?

Well, if anything, the job market is booming and with this, for certain industries, there are often more roles available than there are candidates. This is down to the rise in employment levels from those who had been otherwise unemployed leaving the job market to find permanent work.

Employment rates in 2022

According to official statistics released at the beginning of 2022, employment rates across the country are at an all-time high, despite what can be considered stagnant economic growth since the effects of the COVID-19 pandemic.

With 75.7 percent of people in paid work at the beginning of 2022, the rate of people in employment rose to roughly 32.5 million people by May 2022. As discussed, the increase in this employment rate was driven by a rise in people aged 16 to 64 years moving from unemployment to employment. However, there was also a record-high movement of people from economic inactivity into employment. 

Even though the pandemic came with its own difficulties and changes for the workplace, the damage appears to have only been transitory as, according to government forecasts, unemployment will continue to be at a much lower percentage than in previous years-  at approximately 4.6 percent until at least 2027.

Job to job moves in 2022

Total job-to-job moves also increased to a record high of 994,000 during the January to March 2022 period, driven by people resigning rather than being dismissed by their employers. Alongside this, part-time work and self-employment remained below pre-pandemic levels, with full-time employment as the primary driver of growth. This increase occurs as people seek permanent employment to ride the increases in bills and inflation that come with the current cost of living crisis. This means that gradually the country’s labour market has improved even though economic development slowed in 2015 with Brexit bringing along its economic instability. 

So why are people jumping ship? As an employer, you may ask yourself, surely people value the stability of staying within their permanent role during such uncertain times? But a lot of it boils down to the simple fact of salary, at the importance of it to employees at present.

As the cost of living crisis continues and pay packets are beginning to feel the pinch, priorities are changing when it comes to what staff are looking for from their employer. Post lockdown, many workplaces found their staff valued the continuity and flexibility that working for their employer through the pandemic had granted. Hybrid working, flexibility and job security are important factors for employees. But it now seems that the majority of people would pass this up in exchange for a bigger pay packet.

76.61% of people would choose a higher wage over a happy workplace

A recent survey conducted by Plant Plan has shown that 3/4s of people asked would choose a higher wage over a happier place to work. Out of 70,000 people asked 23.39% said that they would not choose a higher wage over a happier workplace and a considerable 76.61% said that they would.

With the cost of bills, food and fuel at an all time high, people are favouring the extra cash in their pay packet.  A boost in income is a welcome incentive for all employees but how should employers tackle this when attracting new talent and keeping hold of current staff? Should they meet this with employment perks like gym membership and additional holidays or give them the monetary value in their wage slip?

What are employees prioritising when looking for their next role?

At Nelson Permanent Placements we are seeing first hand from both the candidates and employers, whether working in construction, sales, or other industries, that we speak to, that the cost of living, inflation and interest rates are at the forefront of people’s minds right now. So when it comes to hiring and retaining staff it’s a real balancing act when offering a competitive salary and attractive workplace perks. Not everyone wants gym membership and a transport allowance. And some people will value the flexibility of hybrid working over a promotion, especially those with school aged children and family commitments.

But one thing that remains a contestant for the state of employment in 2022 is that a competitive salary is key. People are concerned about the increase in their basic expenditure at the moment and a higher wage over employee benefits is considered more helpful for the present concerns at this time.

Final Thoughts

It’s a known fact that happy workers can make a thriving workplace but maybe in this instance, this happiness comes from the stability of a larger pay packet than the working environment itself. The cost of living crisis and rises in inflation and interest rates are playing a big part in people’s day to day lives. Employers need to measure happiness based on the current needs of their employees and adapt to this where possible and at the moment it’s clear that the cost of living is playing a significant part in that.       

The reality is that the rise in employment rates, especially post pandemic can only be seen as a good thing for the state of employment in 2022. With the 2022 job market moving at the rate it is, our recruitment agency in Birmingham are here to provide support. Whether you are a candidate wanting to move on from your current position and looking for your next role or are an employer looking to recruit high-calibre staff, we can help. 

Please get in touch with us on 0121 796 2474 or send us an email at info@nelsonpermanentplacements.co.uk.