Labour Market Tracker: New job ads hit a 14-month high as businesses still need to hire

• There were 256,855 new job postings in the week of 6-12 Feb 2023 – the highest recorded since data collection started in Jan 2022. It is also 26.8% higher compared to the week before (30 Jan-5 Feb 2023) and 22.4% higher compared to the same period in the previous year (7-13 Feb 2022).
• The number of active postings in the week of 6-12 Feb was 1,323,315 – a 6.6% increase compared to the previous week (30 Jan-5 Feb), but an 8.5% decrease compared to the same period last year (7-13 Feb 2022).
• Notable increases in adverts for construction trades floorers and wall tilers (+ 52.7%), painters and decorators (+43.1%), construction operatives (+23.5%), and carpenters and joiners (+22.8%).
• Three out of the UK’s top ten hiring hotspots in the week of 6-12 Feb were in Scotland: Falkirk, East Dunbartonshire, South Lanarkshire.
• Three out of the UK’s bottom ten hiring hotspots were in Wales: South West Wales, Gwynedd, Powys.

There was a boom in the number of new job adverts (256,855) in the week of 6-12 Feb 2023, according to the Recruitment & Employment Confederation (REC) and Lightcast’s latest Labour Market Tracker.

There has been a 6.6% increase in the number of active postings in the week of 6-12 Feb compared to the previous week, with 1,323,315 active job adverts. The previous week saw a drop in demand with 1,241,200 active postings - perhaps due to school half term when many people are on-leave from work – suggesting that the overall demand, while volatile, continues to remain at a high level.

Neil Carberry, Chief Executive of the REC, said:

“Employers are still looking to hire, even in a slower economy. In part, that is driven by shortages – but it is also likely to be a reaction to a stronger-than-expected start to the year. It is still a good time to be looking for a new job, to open up opportunities and boost pay. But for businesses it is more challenging than ever – that is where working with the right professional recruiter comes in.

“Construction is perhaps the most reactive sector to changes in economic weather, so the sector bouncing back now is a sign of renewed hope, as well as new projects getting underway in the spring.

“The entrenched labour shortages that are driving this buoyant labour market are not sustainable for our economy and likely to damage economic growth. The economy stands to lose up to £39 billion in GDP every year from 2024 unless business and governments act on labour shortages. We hope the Chancellor will put people issues first in his Budget next month by addressing key issues, such as childcare, skills and infrastructure.”

Occupations with notable increases in job adverts include floorers and wall tilers (+52.7), painters and decorators (+43.1%), telephonists (+23.9%), construction operatives (+23.5%), and carpenters and joiners (+22.8%).

In contrast, driving instructors (-23.4%), weighers, graders and sorters (-22.3%), veterinarians (-21.3%), packers, bottlers, canners and fillers (-17.3%), and veterinary nurses (-16.6%) saw the biggest weekly decline in job adverts.

Falkirk (+16.3%) saw a bigger growth in job adverts in the week of 6-12 Feb 2023, followed by Tower Hamlets (+15.5%), Walsall (+15.4%), and Solihull (+14.6%).

Medway (-3.2%) saw the largest decline in job adverts, followed by Herefordshire (-2.6%), Bromley (-1.7%), and Dumfries and Galloway (-1.3%).

Elena Magrini, Head of Global Research, Lightcast, said:

“Despite the recent news that the Office for Budgetary Responsibility (OBR) has revised its forecasts for economic growth down by between 0.2% and 0.5%, when we look at the labour market we are still seeing strong demand, with nearly 257,000 new online job advertisements being posted in the week beginning 6^th February – about 15% above the same period in 2022. This may be reflective of continued confidence amongst some employers, but may also perhaps be indicative of the labour shortages identified by the OBR as one of the reasons for its more pessimistic forecast.

“One of the most interesting subsets of the data is the growth in demand for construction jobs. At a time when organisations such as the Construction Products Association (CPA) are forecasting a fall in construction output of 4.7% in 2023, we might have expected to see a slowdown in demand for these jobs. However, it seems that for the time-being at least, employers in the construction industry are still seeking large numbers of new workers, suggesting that the predicted downturn has not yet been reflected in a slowdown in recruitment activity."

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 between 6-12 February 2023. 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. The ONS provides an explanation for the different job roles used in the report.
4.  REC cautions that today’s new postings data may include ‘noisy data’, meaning that it is heavily influenced by a coincidental external influence, such as if many employers decide to start recruiting in the same week.

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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:

Key indicator occupations