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UK Labour Market Outlook & The Impact on Recruitment

Posted on 12 December 2022

​Earlier this year, we released a Labour Market Overview, highlighting a positive rise in employment rates. Stats showed there were fewer unemployed people than job vacancies, however, as we approach a new year, where are we now?

The CIPD emphasise that securing talent still remains a pressing concern, especially as the UK struggles with the on-going cost-of-living crisis. Whilst they suggest we are likely to enter a downturn soon, competing for talent and becoming the ‘employer of choice’ remains vital, to minimise turnover and secure the best talent for those hard-to-fill vacancies.

Within their latest Labour Market Outlook, the CIPD state that employment confidence remains positive, with 47% of businesses focusing on upskilling their staff, and 44% are increasing wages (up from 29% in the previous quarter), however, 46% of recruiting employers are still struggling to fill difficult vacancies. Additionally, according to a recent Great Attrition article by McKinsey, organisations are still trying to attract and retain staff in the same old way, suggesting that companies should further strive to understand and solve the attrition and attraction problem.


So, what else can you do to increase your hiring chances and keep hold of staff?

Using a recruitment agency, like Smith and Reed, can offer tremendous benefits in terms of onboarding the right people, and retaining them.

But why would youpay an agency to do something you can just do yourself, right?

Here are the top 10 reasons why people use us to solve their recruitment needs:


  • Hiring insight

We have access to key hiring insights across your industry and geographical location. Allowing us to understand how difficult the market is, and tailor our approach to finding the right people.


  • Salary benchmarking

Using data insights, experience, and competitor analysis, we offer guidance to determine whether your total reward package is in-line with your competitors.


  • Optimised advertising

We optimise our adverts, using all the right key words and publishing across a variety of national job-boards, enabling us to access the best talent available.


  • Time saving

We filter and vet the candidates first, selecting the best ones to put forward so you can save your time and energy for other business-critical tasks.


  • No hire – no fee

Our sole job is to find you the right candidate so believe me, we work hard on it! But, if we don’t find you anybody, it costs you nothing.


  • Specific industry experience

Whether you’re looking for a receptionist, machine operator, accountant, or Chief Executive, we have a team of knowledgeable consultants, with a variety of experience and expertise across the board, providing a tailored approach to your hiring solutions.


  • Extended reach

Smith and Reed have been going for over 40 years, and we have built some excellent relationships along the way. As well as having a bank of ready-to-go candidates on our database, we also have a vast number of connections – further increasing chances of a fast and successful hire.


  • Flexible coverage

Hiring is not always straight forward. You might need to fill the boots of a retiring fountain of knowledge, cover maternity leave, or bring in a group of short-term hires to help for a set period. Whatever your requirement, we have the flexibility (and experience) to cover it.


  • Lower the risk of a bad hire

Recruiting the wrong person can cause loss of productivity, poor morale, and additional costs, so naturally it’s something best to avoid.

With expert recruitment knowledge and extra time spent getting to know the candidate to assess suitability, we can reduce these risks. We also offer a rebate scheme, for those occasions where things don’t work out - although we all want to avoid that, so plan to get it right the first time!


  • Reduce the time of hire

With a bank of talent at our fingertips, data-driven processes, and a streamlined recruitment approach, we can find the right people much faster.


Whether you’re struggling to source the right people, combating high turnover, or running out of hours in the day, don’t hesitate to contact us if you need some advice.

No commitment, no up-front fees, just a confidential chat to see whether we can support you or point you in the right direction!

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