As we navigate through the summer of 2024, the UK jobs market presents a complex picture of recovery. While there are some positive signs, challenges remain, particularly in terms of full-time employment and real-term wage growth.
Employment Trends
The employment landscape has seen a slight improvement, primarily driven by an increase in part-time and self-employed roles. This shift indicates a growing preference for flexible working arrangements among the workforce. However, it’s important to note that full-time employment has declined, highlighting ongoing uncertainties in the job market.
Inflation and Wages
Inflation remains high, which continues to impact the cost of living. Although there is a 2.2% growth in real-term earnings, this increase is not sufficient to significantly improve purchasing power. As a result, many workers are finding that their wage increases are not keeping pace with inflation, affecting their overall financial well-being.
Sector Trends
Different sectors are experiencing varied impacts:
Management Consulting: This sector is facing downturns due to over-hiring post-pandemic, leading to a more cautious approach in current hiring practices.
Payroll Sector: There is growth in this sector, driven by the complexities of the gig economy and remote work arrangements, which require more sophisticated payroll solutions.
Regional Insights
London stands out as a resilient region with increased permanent staff placements, contrasting with the national trend of declining permanent placements. This suggests that London’s job market is recovering more robustly compared to other regions.
Economic Inactivity
Economic inactivity remains a concern, particularly among older workers aged 50-64. The overall inactivity rate for those aged 16-64 is 22.2%, indicating that a significant portion of the working-age population is not participating in the labour market.
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