Labour market shows signs of recovery despite public sector job losses

July 2010

Figures released today by Totaljobs.com reveals a ‘two-speed labour market’ with recruitment beginning to pick up but jobseekers still facing some of the toughest conditions for a decade. In the first comprehensive analysis of recruiter and jobseeker activity post-election, the number of jobs available has increased by 6.5% from Q1 2010 to Q2 2010 demonstrating a renewed confidence in the market by employers. However, with each job vacancy receiving an average of 10 applications, peaking at 26 in secretarial and PA roles, jobseekers face tough competition.

The Totaljobs Barometer provides one of the most comprehensive representations of supply and demand in the UK job market. With around 2.8 million jobseekers visitors each month, today’s figures provide an indication of how UK recruitment has fared in the first half of 2010 as well as providing insight into how the labour market is set to fare under the new coalition Government this autumn.

John Salt, Director, Totaljobs.com commented on the figures:

“A slight rise in recruitment has encouraged those in employment to have confidence to seek their next position. This is increasing competition for those out of employment and increasingly pitching the desperate against the ambitious in a two speed jobs market.”

Private sector pressures
Sector comparisons reveal that whilst certain industries have prospered in the second quarter of 2010, a number of key areas continue to suffer. Those charting pronounced increases in the supply of jobs have included transport (32%), telecommunications (18%) and customer service (15%). In contrast, sectors to have suffered include nursing (-22%), education (-14%) and senior appointments (-3%). The first affects on the public sector can also be seen, with job postings increasing by only 3% but with an increased number of applications (+11%), it seems that jobseekers are already saturating the market.

Separate research from Totaljobs.com reveals that those leaving the public sector tend to be experienced employees supporting families, with one third (33%) having over ten or more years’ experience rather than younger single workers. With senior appointments in the private sector also shown to have suffered, this risks a significant social challenge as unemployment starts to bite in the autumn.

John Salt, Director, Totaljobs.com continues:

“Public sector spending cuts are changing the face of unemployment in a manner not seen since the decline of heavy manufacturing in the 1970s.The private sector looks geared for growth and thankfully most public sector workers hold an enviable set of transferable skills. For jobseekers it is important they understand the need to remain flexible as to the role and location of their next job.” He continues,”NEETS have historically been shown to be the group to suffer in the recession but we predict a shift to those supporting families in the public sector, whom relocating is a difficult decision. Worryingly, this is a group that has substantially more disposable income than NEETS, leading to potential impacts on the housing market and consumer spending which will put further pressure on the jobs market.”

Regional winners and losers
The research reveals the beginning of an east-west divide between the supply and demand of jobs in several key regions. Despite one of the biggest percentage increases in jobs posted (+12%) this quarter, jobseekers in the North East is experiencing the most competition outside of the capital with 9 applications per job. This is also reflected in competition for jobs in London which is at an all time high of 32 applications per job. A less favourable performance in the North West (+6%) indicates how public sector job losses are set to bite. Finally, bouncing back after a 21% fall in the last quarter, the job market in Scotland is showing the first signs of improvement, with seven applications per jobs – down from nine in Q1 2010.

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This article was sourced from www.onrec.com