Labour Market Tracker: Bounce back in demand for workers in some areas - REC

• The number of active postings in January 2024 was 1,813,663, a 4.2% increase from December 2023.
• There were 873,169 new job postings in January 2024 – a 27.9% increase from the month before.
• In January 2024 Tower Hamlets (20.3%), Armagh City, Banbridge and Craigavon (19.4%) and Newry, Mourne and Down (14.3%) had the highest growth in job postings when compared to December 2023.
• And ahead of the Spring Budget, the jobs data raises concerns that certain worker shortages could both hinder young people’s life chances and the chances of parents returning to work.

Demand for workers rebounded in January after a lull in the labour market at the end of 2023, according to the latest Recruitment & Employment Confederation (REC) and Lightcast Labour Market Tracker.

There were more than 870,000 new job postings in January 2024, meaning there are more than 1.8 million active job postings in the UK.

REC Deputy Chief Executive Kate Shoesmith said:

“We have started 2024 with a slight bounce back in demand for workers in some white collar and blue-collar jobs, after a subdued finish to 2023. This calming is only to be expected after the red-hot labour market as we came out of the pandemic, and activity today remains relatively high by comparison to the pre-pandemic period in some sectors.

“Businesses tell us they are not feeling sure-footed enough to jump into the kind of investing and hiring they want and need to do to meet their growth ambitions, because the UK economy has been essentially stuck in one place for 18 months.

“And that’s where we need a strong response from government and the policymakers. The Spring Budget presents an ideal opportunity to work on the issues holding back broader economic growth and productivity gains. We need policy interventions that incentivise businesses to invest in those areas that will tackle skills and labour shortages, and reduce economic inactivity. While public resources may be limited, simple measures that support people in finding a job, getting to work and staying in work, from transport to childcare, can all make a difference.”

Our Labour Market Tracker also shows:

• The number of active job postings for Early Education and Childcare Practitioners in January 2024 was up 146.2% on pre-pandemic levels (February 2020). And 5.5% higher than in January 2023. 
• Likewise, active job postings for Early Education and Childcare Assistants in January 2024 are up 30.2% on pre-pandemic levels (February 2020).
• And active job postings for Primary Education Teaching Professionals are up 10.4% on pre-pandemic levels (February 2020).

Kate Shoesmith, REC Deputy Chief Executive, said:

“The past few years have shown that advertising for staff and finding them are two different things. There is little hope of filling such a high level of vacancies any time soon given the serious labour shortages in the UK, a problem which creates a vicious cycle.

“The government must develop a coherent workforce plan for the UK if it is serious about lessening the risk that young people’s life chances are impaired by ongoing worker and skills shortages in these vital roles around providing care or early education for them. For example, last year the government announced a large-scale rollout of childcare provision to take place through 2024 and 2025 but that’s proving difficult without increased staffing levels. This is why a long-term workforce plan which joins the dots between different policies around employment and economic growth is so important.

“The vicious cycle for the economy is that we are unable with these types of vacancies to give children the best chances in life while at the same time relying on these same young people to help us thrive in employment and help overcome labour shortages in the future. Added to this is that without enough childcare provision, many parents cannot return to work even if they want to, putting further strain on the labour market.

“We urge the government to think much more long term about workforce needs across all sectors and to develop a plan to increase childcare and the primary education workforce in partnership with childcare providers and labour market experts such as recruiters. The government could also make it easier to access childcare provision by removing bureaucracy such as quickening up access to childcare providers and lessening the frequency of proving eligibility for both the 30-hours entitlement and the Tax-Free Childcare scheme. And expanding access to childcare support to those in training and education to remove barriers to employment. The government can even go as far as granting a business rates exemption to all early years providers to boost the availability of childcare."

Occupations with notable increases in adverts in January 2024 include Quality Control and Planning Engineers (68.9%), Childminders (55.8%) and Probation Officers (52.1%). There was also growing demand for Visual Merchandisers (who design eye-catching product displays and store layouts) and Related Occupations (37.0%), Vehicle Valeters and Cleaners (33.6%) and Animal Care Services Occupations n.e.c (27.8%).

Grey collar roles such as Prison Service Officers, Below Principal Officer (-39.4%), Driving Instructors (-37.0%) and Postal Workers, Mail Sorters, Messengers and Couriers (-29.3%) all showed the largest decline in roles from December 2023 to January 2024.

Across the UK, Tower Hamlets (20.3%), Armagh City, Banbridge and Craigavon (19.4%) and Newry, Mourne and Down (14.3%) had the highest growth in job postings when compared to December 2023. Westminster (-15.0%), Dumfries and Galloway (-9.4%) and West Dunbartonshire (-8.6%) all accounted for the sharpest decline in job postings.

When looking at the top ten counties/unitary authorities for growth in active job postings, four were based in Northern Ireland. This paints a more positive picture than last month, where low growth was mostly contained in Scotland and Northern Ireland.

For the second month in a row, Tower Hamlets saw the highest growth in active job postings in the UK. Of the bottom ten areas with the lowest growth in active job postings, six were in Scotland. This is similar to the previous month, where similarly five of the bottom ten were in Scotland.

Ends

Notes to editors:

1.     The Labour Market Tracker is produced by the REC in partnership with Lightcast, using their Job Postings Analytics data which is harvested from tens of thousands of job boards. Data was harvested in January 2024. For more details, see the attached annexes which, in league table format, detail the top and bottom ten county/unitary authorities for growth in job postings and growth by occupation type.

2.     ‘Active’ job postings are those which were live online during the specified time period. ‘New’ job postings are those which were added to the active stock during the specified time period.

3.     REC and Lightcast switched to analysing monthly data on a permanent basis in January 2024. They had trialled weekly and monthly data in parallel for the final months of 2023, and therefore confident that the data will offer the opportunity for clearer analysis.

The LMT has also moved from analysing Standard Occupational Classification (SOC) 2010 to the revised SOC 2020. The main areas of change from the previous classification are:

a.     A review of the classification of roles as professional or associate professional
This means that occupations such as Paramedics, Multimedia Designers, Investment Analysts, and Taxation Experts, which were part of the “Associate Professional or Technical” classification in SOC 2010, have been reclassified as “Professional” occupations in SOC 2020.

b.     The reclassification of occupations associated with information technologies
This means that the growth in IT roles over the last decade or so has now been recognised by the creation of new unit groups such as Cyber Security, Quality and Testing, Networks, Web Design, Database Administrators, and IT Trainers.

c.     Disaggregation into less heterogenous unit groups
This includes the creation of a separate role for Logistics Management; distinguishing General Medical Practitioners from Specialist Medical Practitioners; a breakdown of nursing roles; and more detail on storage and warehouse roles.

d.     Overall, the new SOC 2020 classification system is more granular, with 43 more occupations at the 4-digit level than the 2010 version. This means that the REC can provide better and more up-to-date information, based on both the 43 the new classifications and the reviewed classifications.

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About the REC

The REC is the voice of the recruitment industry, speaking up for great recruiters. We drive standards and empower recruitment businesses to build better futures for great candidates and themselves. We are champions of an industry which is fundamental to the strength of the UK economy.

Find out more about the Recruitment & Employment Confederation at www.rec.uk.com.

About Lightcast

Lightcast (formerly Emsi Burning Glass) provides trusted global labour market data, analytics, and expert guidance that empowers communities, corporations, and learning providers to make informed decisions and navigate the increasingly complex world of work. With a database of more than one billion job postings and career profiles, our team provides best-in-class customer service with robust data, clear analysis, and expert guidance on skills, jobs, and opportunities. 

Headquartered in Boston, Massachusetts, and Moscow, Idaho, Lightcast is active in more than 30 countries and has offices in the United Kingdom, Italy, New Zealand, and India. The company is backed by global private equity leader KKR. For more, visit www.lightcast.io/uk.

ANNEXES

Top ten and bottom ten county/unitary authorities for growth in job postings:

Top ten and bottom ten occupations by growth in job postings:

Key indicator occupations

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