July 2024

The summer holiday season is upon us! And we could probably all do with a break. There’s no point pretending – the market hasn’t been as favourable as we would all like. The REC & KPMG’s regular Report on Jobs last week underlined the point – but also offered us some hope. Perm appointments fell again in June, with recruiters identifying the election as the latest thing staying clients’ hands. The good news is that brake is now firmly removed.

We remain confident of an improving picture across the rest of the year, especially as interest rates start to fall, probably from August.

The other silver lining was temp billings going back into positive territory. We know the temp market tends to recover first as growth turns up, as it allows firms to hire while still managing risk. The sector picture varies widely – but we are seeing more positivity from key sectors, like Construction, than we have for a long time.

The value of strong recruitment partnerships

In a tough market, clients face tough choices. Part of this lies in how and when they recruit. The UK has one of the most competitive staffing markets in the world – but some clients will seek to squeeze things further, not just in what they pay, but on when and how. There is no sustainability in that approach – and it is up to all of us in the profession to make the case for doing things differently. Your clients don’t hire the cheapest lawyer, or a component supplier on an entirely contingent basis. In a labour market that is only going to get more difficult to hire in, a more professional approach is essential to their long-term success. The REC is here to help you make that argument to businesses.

We do this partly through the jobs data we provide, which is always available for REC members to use, and it was the point of our Aim Hire report released earlier this year. This acts as a guide for clients looking to leverage more from building strong partnerships with their recruitment advisors.

And, as all good consultants know, the best way to build these partnerships is face to face – which was the purpose of our in-person annual conference, #RECLive24 last month. We had a fabulous day. We heard from clients across a range of sectors, who articulated the issues and what they expect from recruitment professionals. We had time for recruitment leaders to learn from those at the very top of our industry right now, and to self-reflect on their leadership with Pellegrino Riccardi . And the fast-paced insight on AI from Priya Lakhani OBE demonstrated just how quickly things are moving and why we need to be on this journey. Look out for the RECLive24 highlights coming soon!

Some of this work is about preparing ourselves for the market that is to come. Some of it is group therapy! But as we start to turn the corner from this market into something new, we know change is inevitable. We’re here to help.

A changing market and new Government

Our market is always changing. And with this new Labour Government there seems to be big changes afoot for the economy. We’ll see steps towards creating an Industrial Strategy, a further focus on devolution, a new Employment Rights Bill and a flurry of consultations starting with this week’s King’s Speech.

While this should crystalise plans around investment and the enforcement of regulations in our sector, it’ll also include challenges for our flexible labour market. Around worker status, public sector procurement, and employment rights – we need to make the case for the flexible approach. Helping the politicians understand the realities of work in the UK today – and the superb work that you do, not just growing the economy but helping candidates grow their careers – is key to avoiding bad regulation.

Look out for our work telling the transformative stories of people working via REC members later in the summer – a key way of showing why Government needs to cherish flexible forms of work, not demonise them. And we’ll keep you in touch with all the legal and compliance changes as they come on stream – we're here to help. Do come along to an REC event to learn more!

It is about a lot more than just a change in Government though. We’ve heard your feedback that business development skills are a key need in this market. So we have a cast of experts coming together in the autumn to help you out – motivational sales and leadership coach, BRAD SHACKLETON , tech whizz Wendy McDougall 🐠🐠🐠 from Firefish and Richard West from Formula 1! They’re out on the road in September, October and November to take us through a masterclass in high performance for your business. You can find out more about our tour here - come and join us!

But for now, I wish everyone a relaxing and enjoyable summer break, whenever you get to it. The market is on the turn – and we are all looking forward to supporting your business to take advantage of it!

Neil Carberry

REC Chief Executive

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