Careers In Group Market Insights Report - March 2023

 

Welcome to the latest Market Report from the Careers In Group specialist job boards.

We have analysed the labour market to the end of December 2022, as well as our own job board data, plus the recurring themes highlighted by our clients and partners during 2022, to provide insights into the latest trends and how these are affecting the Audit and Governance recruitment and talent and employment industries.

While 2022 didn’t quite live up to the desire for a stable and uneventful year following on from the previous two years of disruption, the employment market remained active, and the Audit and Governance industries continued to present good opportunities for businesses to grow and develop their teams.

We have also investigated the trends arising during the first two months of 2023 to provide the latest insights and analysis from our advertisers and candidate base.

 

Key Insights:

• Demand is increasing for Audit, ESG/Sustainability and Data Analytics professionals
• Almost 20 million Britons, or 66% of the UK workforce, are considering changing jobs in 2023
• Employers are continuing to keep their recruitment in-house with high numbers of roles being advertised directly
• Recruitment Agencies and Head-hunters are stepping up their candidate sourcing activity
• Increased job application activity by Jobseekers in early 2023
• Targeted approaches to talent attraction are key in finding the right candidates

 

Careers In Group Job Board Trends

Job Numbers

In the previous report we saw a steady increase in job posting numbers, which had doubled to the end of September from the start of 2022. The number of new jobs posted per month remained stable from October to December, belying the usual trend of a downturn in the number of jobs posted each month towards the end of the year.

 

 

 

 

Job Types

The number of External Audit jobs live on CareersinAudit.com rose by 16% from November to December, after a slight dip in job numbers from October to November. ESG & Sustainability job numbers increased by 12% from November to December recovering after a slight decrease in the previous quarter. There was also a slight increase in the number of Analytics and Compliance jobs live from November to December, continuing an upward trend in the numbers of jobs live in these sectors.

In Q3 we saw an increased demand for Internal Audit and IT Audit professionals. This demand for IT Audit professionals has remained stable in the last quarter of 2022, along with External Audit professionals. The demand for Internal Audit professionals decreased in Q4 after showing an increase in activity in Q3. This is expected to turn around in Q1 2023 however when many large firms receive their new yearly recruitment budgets.

 

 

Direct employers vs recruitment agencies

The numbers of jobs being advertised by Direct Employers on Careers In Group job boards continued to remain higher than those being advertised by Recruitment Agencies in the final quarter of 2022. Bucking the usual end-of-year trend where the numbers of jobs being advertised by both groups tends to fall in Q4, the numbers of jobs posted by Direct Employers actually rose slightly each month towards the end of 2022.

While the numbers of jobs being advertised by Recruitment Agencies was lower than Direct Employers in Q3 and Q4 of 2022, this disparity is expected to balance out in Q1 2023 as Recruitment Agencies continue to recover from their heavily reduced advertising activity levels during the pandemic and mini-budget related confidence dip of late 2022 and re-enter the job advertising market with vigour.

 

 

 

Careers In Group Market Observations

• Risk and Data Analytics candidates are currently high in demand, with many corporate clients discussing vacancies in these areas with the Careers In Group team.

• Recruitment agencies are still going strong but there has been a shift in the market over the past couple of months from a strong candidate led market to a slightly weaker candidate market, which is likely to change to client led in Q2 in 2023. This means more candidates on the market and less jobs available. For now, rec cons are doing very well and making a high number of placements.

• Retail banks across the UK are recruiting again and are increasing headcount across Audit, Risk, Compliance and Data. They are also building larger sustainability and ESG teams however the focus on ESG has slowed slightly. This is set to increase again later in 2023 once the immediate UK recession worries have abated.

• Local government, County Councils and City Councils in the UK have heavily stepped up their recruitment activities in the last quarter of 2022.

• Uptake on annual commitments including job slots was positive in the final quarter of 2022. This shows that there is a clear expectation that 2023 is going to remain competitive for candidates, especially in the field of External Senior Auditors and IT Audit professionals.

• Tech Solutions and Crypto Currency Trading start-ups continue to be a growth area with what seems to be a growing market. From this, we are seeing a higher demand for compliance professionals to move across to these new markets.

• Companies are continuing to invest in AI and data automation tools as well as Data Analytics, Risk and Cyber Security recruitment

 

 

UK Employment Market Update

Employment rate continues with slow and steady growth

The employment rate for October to December 2022 was 0.2 percentage points up on the previous quarter, and was also up on the year, but is still below pre-pandemic rates. The increase in employment over the latest three-month period was mainly driven by part-time workers.

 

 

The unemployment rate increased slightly

The unemployment rate for October to December 2022 increased by 0.1 percentage points on the quarter, to 3.7% - although this is still only slightly higher than the record low of 3.5% seen in August. Overall, while still lower than before the pandemic, the unemployment rates for both men and women have now returned to levels similar to those seen before the coronavirus outbreak.

The number of people unemployed for up to six months increased in the latest three-month period, driven by people aged 16 to 24 years. The number of people unemployed for between six and 12 months also increased, while those unemployed for over 12 months decreased.

 

 

Payrolled Employees reached another record high

After setting a new record in September of 29.7 million, the most timely estimate of payrolled employees for January 2023 showed another monthly increase, up 102,000 on the revised December 2022 figures, to a new record high of 30.0 million.

 

 

Inactivity rate decreases

The economic inactivity rate decreased on the quarter but increased on the year, and is still above pre-pandemic rates. Looking at economic inactivity by reason, the quarterly decrease was driven by those inactive because they are students, retired, or long-term sick. The decrease in economic inactivity during the latest three-month period was driven by people aged 16 to 24 years.

 

 

Weekly worked hours decreased

Total actual weekly hours worked in the UK have been generally increasing since the relaxation of coronavirus lockdown measures. However, compared with the previous three-month period, total actual weekly hours worked decreased by 2.9 million hours to 1.04 billion hours in October to December 2022. This is 16.6 million hours below pre-pandemic levels (December 2019 to February 2020).

The decrease in the latest three-month period was driven by men, whose actual weekly hours worked remain below pre-pandemic levels. The total actual weekly hours worked by women increased and remain above pre-pandemic levels.

 

 

Job vacancy numbers decreased

Although still above pre-pandemic levels, in November 2022 to January 2023, the estimated number of vacancies fell by 76,000 on the quarter to 1,134,000, the seventh consecutive quarterly fall since May to July 2022. The fall in the number of vacancies reflects uncertainty across industries, as survey respondents continue to cite economic pressures as a factor in holding back on recruitment.

 

 

Real Earnings are still falling

In real terms (adjusted for inflation), growth in total and regular pay fell on the year in October to December 2022, by 3.1% for total pay and by 2.5 for regular pay. This is smaller than the record fall in real total pay we saw in February to April 2009 (4.5%), but remains among the largest falls in growth since comparable records began in 2001. This is despite regular pay seeing the strongest growth in the latest quarter outside of the pandemic period. Growth in average total pay (including bonuses) was 5.9% and growth in regular pay (excluding bonuses) was 6.7% among employees in October to December 2022.

 

_{(UK Employment Market Update, Source: Office for National Statistics)}

 

 

UK Employment Market Industry Observations and Insights

• A Lords report released in December warned that the exodus of more than half a million people from the British workforce since the Covid pandemic has put the economy at risk and caused severe staff shortages across the country. The report suggests that 50-64 year olds who have chosen to retire early are a key driver of rising economic inactivity, however some may consider returning to work to meet rising expenses due to the cost-of-living crisis.¹

• LinkedIn revealed in January that almost 20 million British workers are considering changing roles in 2023. Of those looking to move roles, 50% say they are confident that they will secure a new job, while 19% are not confident in securing a new role. ²

• The ‘Jobs on the Rise’ list, also from LinkedIn, shows that climate change, cyber threats, and the need to drive business growth is shaping the top 15 fastest growing roles for 2023. In the UK, Sustainability Manager is marked as the second fasted growing job role, and it also features on the lists of jobs with increasing growth in 13 other countries. Other jobs included on the 15 fastest growing jobs in the UK list include Cloud Engineer, Data Science Manager, Data Engineer, and Security Operations Centre Analyst. ²

• Recruiter Magazine predicts strong demand in the UK hiring market in 2023, driven by acute skills shortages and candidate scarcity, despite recessionary concerns. The Technology, Finance and IT sectors, which are high-growth and candidate-short, are key drivers in this expected demand. Their research shows that businesses are looking for partners who can provide access to quality candidates as part of long-term talent sourcing strategies. ³

 

 

2022 Conclusion

While Q3 and Q4 of 2022 were a little more turbulent than many were expecting, the employment market still remained active with many Direct Employers handling the economic uncertainty by bringing recruitment in-house to save costs. Some employers have put recruitment on hold while the ride out the threat of recession.

The number of new jobs posted per month on Careers In Group job boards remained stable towards the end of 2022 with a slight increase from October to December, going against the usual end-of-year trend of a decrease in jobs posted in Q4. As with any economic downturn, the demand for Audit & Governance candidates actually increases with businesses rushing to explore their options on how to best get through the uncertainty and out the other side with minimal losses. This increase in demand for Audit, Risk and Compliance professionals is expected to continue into Q1 and Q2 of 2023 as companies continue to rebuild after the pandemic and the threat of recession.

The employment market is still currently candidate-led, so employers and recruiters will continue to face challenges with attracting applications from a largely employed workforce. Engaging with specialist talent attraction providers and focusing on targeted approaches for recruitment campaigns will be key to finding the right people.

 

 

2023 January & February Insights

With the start of a new year often comes a change in activity levels on the Careers In Group job boards and this year is no exception.

While there is still some uncertainty in the economy and employment market in general carried over from 2022, we are seeing increases in activity across the board from both employers and jobseekers.

 

Careers In Group Market Insights – January & February 2023

• Recruitment Agencies are increasing advertising activity with a 41% spike in the number of jobs live in January 2023 compared to December 2022

• Roles advertised by Direct Employers are up 224% on this time last year

• After a slight dip in demand in late 2022, ESG and Sustainability roles are gaining traction in 2023 with a 28% increase in the number of jobs live in this area from January to February

• The demand for both Internal and External Audit professionals increased in January with a 23% and 20% rise in the number of jobs live respectively

• Data and Analytics professionals are also in demand, with a 20% increase in total Analytics jobs live from January to February

• The number of new jobs posted per month on Careers In Group job boards has returned to pre-pandemic levels

• Jobseekers are stepping up their job application activity, with a 29% increase in the response rate to job postings from December to January, and a 15% increase from January to February. The response rate is also up 9% on this time last year.

 

 

Conclusion

2023 has started strong for Audit & Governance recruitment, with increased demand across several job types and an uptick in the activity of jobseekers within the sector in general.

However, with unemployment still near record low levels and many employers with an urgent need to grow their specialist teams and fill vacancies quickly, businesses need to work harder and smarter to attract the right talent for their roles.

The current employment market is still largely candidate-led, meaning that the aim of a lot of recruitment advertising will need to be tailored towards convincing candidates to move roles rather than attracting applications from those who are not currently working.

Professionals working within Audit & Governance are specialists within their sectors, and their job search behaviours tend to reflect this targeted approach. In order to find the right people for their vacancies, companies and recruiters looking to hire specialist talent will benefit from engaging with niche talent providers who understand these professionals and invest in direct targeting to get their vacancies seen by the talent that they are looking for.

 

 

To request a PDF copy of the March 2023 market insights report, please email us.

 

_{1. https://www.theguardian.com/business/2022/dec/20/exodus-of-more-than-half-a-million-from-workforce-puts-uk-economy-at-risk} 

_{2. https://employernews.co.uk/news/linkedin-reveals-the-fastest-growing-jobs-in-the-uk-as-20-million-brits-consider-changing-jobs-in-2023/}

_{3. https://www.recruiter.co.uk/depth/2023/01/hot-100-recruitment-sector-proves-its-durability}