The pandemic put a stop to much of day-to-day life over the last 18 months. As society, the economy and our own lives begin to take shape again, recruitment is still suffering in the capital. 

Why are businesses in London facing such a difficult time hiring new staff? Accounting firm KPMG Recruitment and Employment Confederation (REC) believe that a siege of post-pandemic hiring is the cause; and companies have even pulled from making permanent hires in the meantime due to the talent shortage. 

Anna Purchas, London office senior partner at KPMG, says London is facing the “the sharpest fall in permanent labour supply in the country”; whilst warning that “the talent shortage in the capital has the potential to impact plans for growth significantly.”

As companies are focused on growth and vacancy numbers rising, Neil Carberry, CEO of the REC, believes this is a “great time” to be searching for a job. 

“The labour market has been tightening for months on end, driving near-record growth in starting salaries for new staff. With vacancy numbers also historically high, this is a great time to be looking for a job – and a pay rise to help meet the rising cost of living.”

A report compiled by S&P Global on behalf of KPMG and REC found: 
 

• The number of open temp jobs in London expanded sharply in April 2022
• The number of candidates available for both permanent and temporary jobs continued to decrease in April
• The sharpest uplift in permanent placements was seen in the Midlands during April 
• Rates of pay inflation for permanent and temp staff eased to four- and three-month lows respectively
   

Anna Purchas said: “It’s evident that despite the economic backdrop, businesses are focussed on growth.”