While 2016 was a pretty crazy year with the voting of Brexit and Donald Trump, 2017 has still been a pretty eventful year, especially in the world of recruitment so here at aspire cambridge we thought we would put a blog together as a review of the recruitment sector in the UK for 2017;
With Brexit coming more into play this year a clear impact on trade has been seen and although some industries and businesses have reported a boost, many others are still pondering their fate with a strong air of caution seen by many.
It was always expected that Brexit would influence and affect the recruitment sector in regards to staff shortages, especially in the public, healthcare, hospitality and leisure sectors that are known to historically rely on foreign workers. Recently the REC stated in a monthly survey report that starting salaries grew in October at the second quickest rate since November 2015 as businesses are forced to increase pay as a way to attract new employees and talent. EU workers are already leaving the UK in fear of the uncertainty they face now and could face ahead so employers have to work harder to retain and recruit talent.
Recurrently through 2017 there has been talk of falling unemployment and many leading economics believe that the is very close to full employment which has led to more concerns over the shortage of job seekers which results in a higher competition for recruiting talent and retaining existing talent within a business.
Another challenge for the public sector was the introduction of the IR35 rules that can into force on the 6th April – in many cases this has seen contractors turn their backs on working in the public sector and this has resulted in demands for pay increases.
Contractor Calculator and the Independent Health Professionals Association recently put together a report highlighting the NHS and its failure in replacing contract workers that have been forced out of the sector due to new IR35 rules and this is what they found;
- 25% of respondents have left the NHS following IR35 reforms
- 60% of respondents were deemed ‘inside IR35’ after the NHS applied unlawful blanket assessments
- 72% of respondents are considering changing careers entirely as a result of the IR35 changes
- 87% of respondents say that the reforms are already drastically impeding patient care
Further research from The Association of Professional Staffing Companies (also known as APSCo) who surveyed 1,494 professional recruiter firms shows that the IR35 changes have also impacted recruiters; we have listed the main areas of concern;
- 70% of professional recruiters state that contract placements in the public sector have dropped
- 45% of professional recruiters report that charge rates for contractors working in the public sector are increasing
- 78% of professional recruiters believe that extending IR35 rules to the private sector will impact the UK economy’s ability to source flexible labour
We look to have many changes for the year ahead too, with the introduction of GDPR which will change the way information and data is handled within a business as well as how personal data from a candidate can be used by a recruitment agency.
In review 2017 has been a busy and challenging year for this in the recruitment sector and this does not look to change as we enter 2018. With uncertainties around Brexit weighing heavily on recruiters minds nobody knows quite what to expect for the year ahead.