Welcome to the Totaljobs Employment Index
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- Lynette George
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1 Welcome to the Totaljobs Employment Index Now we are well into Q1 of the 2017 calendar, significant legislative changes that affect employers are fast approaching. The Apprenticeship Levy comes into force on April 6th, and will require businesses with an annual payroll in excess of 3 million to pay a 0.5% levy to HMRC each month. The government will add 10% and once businesses have declared their levies, they can access a new apprenticeship service account to fund apprentices starting after 1 May. With Generation Z those born around 2000 soon to enter the workforce, the Apprenticeship Levy is a timely impetus for employers of all sizes to take stock of training and development. Apprenticeships are a valuable and soughtafter entry point to many industries, and our Apprenticeship Levy Research shows that almost 50% of respondents are considering undertaking a degree apprenticeship studying for a degree whilst working in the next five years. This month, our spotlight dives deeper into this research. We ve also worked with the National Apprenticeship Service to outline how companies can best prepare for the incoming changes and leverage the growing opportunities. In this, our February Totaljobs Employment Index (TEI), we ve analysed data from our website and highlighted the key employment trends to help employers keep up-to-date on the market today. With more than 6 million jobseekers visiting our site every month and close to 181,000 live job adverts throughout January 2017, it s a powerful indication of how the job market is performing.
2 Totaljobs Employment Index February 2017 Totaljobs Employment Index: January 2017 Continuing the trend we have seen emerging over the past year, January 2017 revealed a steady jobs market for the recruitment industry. Our January TEI shows UK job applications are up 39% year-on-year, jobs are up 8% and applications per job are sitting at 28%. Contrasting the last three month s figures against the same period last year (Nov, Dec 2016, Jan 2017, vs Nov, Dec 2015, Jan 2016) we see that jobs are up 10% and applications are up 35%, with applications per job rising 23%. Seasonal fluctuations over the past three months (Nov, Dec 2016, Jan 2017) vs the previous three months (Aug, Sep, Oct 2016) saw applications rise 14%, applications per job rise 22%, but jobs head down -6%. This seasonal ebb and flow is very much part of the recruitment industry calendar, and it s certainly not unusual to see a dip in the jobs market over the festive season. But these peaks and troughs do highlight the importance of consistently offering an attractive employment package and investing in employer brand, to ensure that you not only attract top talent, but retain them too. Job Posts Applications Applications per job 8% year-on-year 39% year-on-year 28% year-on-year How does this break down across the UK? Job seekers in East Anglia and the South West proved the most active in the last three months, compared to the same period last year (Nov, Dec 2016, Jan 2017, vs Nov, Dec 2015, Jan 2016), with applications per job up 36% and 31% respectively. Meanwhile, the best performing regions for job growth in the same period were the West Midlands and East Midlands, both up 14%. It s good news for the Midlands and aligns with PWC s recent UK Economic Outlook, which predicts 0.3% job growth in both East and West Midlands in 2017 a solid rise considering that PWC predicts job growth in the capital to be 1.4% in the coming year. Strongest regions for applications per job: Nov/ Dec 2016, Jan 2017 vs Nov/Dec 2015, Jan 2016 South West 31% East Anglia 36%
3 Totaljobs TotaljobsEmployment EmploymentIndex Index November February A look at the jobs market by industry Year-on-year comparison between January 2017 and 2016 reveal transport and logistics was one of the fastest growing sectors, with job growth rising 27% and applications per job up 29%. The increasing popularity of online shopping and evolution of delivery and returns options, from internet titans such as Amazon, continue to create opportunities. From the number of applications per role, job seekers are clearly attracted to this fast-paced sector, where flexibility, particularly around hours, is woven into the role. In the same year-on-year period the other big growth we saw is in the health and nursing sector, where job growth rose 22% and applications per job rose 36%. The pressures of an aging population and the fragmentation of health services is providing more opportunities for healthcare workers and we expect job growth to continue. However, the largest year-on-year increase in candidate interest falls to the not for profit/charity sector, where applications soared 62%, applications per job were up 67% and job growth was down -3%. Candidates are chasing opportunities in fast-paced industries with applications per job up year-on-year (Jan 2017 vs Jan 2017) Transport and logistics 29% Health and nursing 36% Not for profit /charity 67%
4 Totaljobs Employment Index February 2017 What does this mean for you as an employer? As we move on from a year of surprises, 2017 is shaping up to be the year of the unknown. With the Apprenticeship Levy coming into force in a matter of weeks on April 6th and Gender Pay Gap reporting starting from April 5th, set against a backdrop of complex Brexit negotiations, both job seekers and employers may best allay any nerves by concentrating on immediate changes they can effect. There continue to be many opportunities for the recruitment industry in the months ahead. While unemployment is at the lowest level for more than a decade, according to ONS figures, it s clear from the rising number of applications that we have observed, that candidates, whether in work or not, are active and motivated to seek out new roles. Employers will naturally undergo a teething process with the introduction of the Apprenticeship Levy, but this legislation provides impetus to reassess their recruitment strategy and focus energy on core skills that employees need to thrive and succeed. Practical, on-the-job training and learning from experienced practitioners, is proving a huge draw. And according to our research, it seems employers are ready to answer the call with 48% saying that apprenticeships are a great way to get people into their industries.
5 Totaljobs Employment Index February 2017 Spotlight on: Apprenticeship Levy Whether or not businesses currently have apprenticeship schemes in place, the Apprenticeship Levy will be coming into effect from April 6th. While the legislation adds complexity to apprenticeship funding, it does provide a huge opportunity for employers to grow apprenticeship offerings. We undertook our own research to better understand the mood of the market as we approach 6th April, sampling 2,200 jobseekers and 97 businesses. Positively, employers have already responded to the coming change, with 30% planning to take on more apprentices this year than they had in previous years. This reflects the news from the World Economic Forum in Davos last month, where PwC s CEO Survey highlighted that UK CEOs chief concern is the availability of key skills - second only to uncertain economic growth. We also found that appetite for apprenticeships is strong among jobseekers, with 36% considering undertaking an apprenticeship in the next five years and 49% considering a degree apprenticeship (working whilst studying for a degree) in the same time frame. The ability to earn as you learn is one of the biggest attractions (47%), and when it comes to costly tertiary education, 34% of jobseekers would choose an apprenticeship over going to university. Despite this positive interest, it seems there are opportunities for employers to better communicate their offerings. The number of jobseekers that said they had been encouraged to apply for an apprenticeship were low, with just 12% reached through advertising, 9% through job centres or by word-of-mouth through their parents, while just 13% heard about opportunities at school. The talent is there to be tapped. Through strong employer brand positioning, effective stakeholder engagement and sensible advertising being clear and concise in adverts and featuring the benefits of the position employers can attract a host of strong applicants with a genuine desire to forge a career in their industry. More tips for attracting top talent can be found in our Understanding Talent Series here
6 Totaljobs Employment Index February 2017 Are you ready? Top tips from the National Apprenticeship Service With the changes to apprenticeship funding imminent, there are some things employers operating in the UK must do now. If you have a pay bill, or are connected to a group with a collective pay bill of more than 3million, then you should: Start planning how your business could use apprenticeships. Read the updated guide for employers on paying the levy, accessing the apprenticeship service and paying for apprenticeships in future. Use the online tool for employers to calculate your levy contribution, begin to plan your training and estimate what you will have available to spend on apprenticeships. If you are a UK employer, or group, with a pay bill of less than 3million then you will be classed as a non-levy paying employer. In England, the government will pay 90% of your apprenticeship training and assessment costs. You will cover the additional 10% as well as any additional costs you agree with your chosen apprenticeship training provider. The government is offering additional support to organisations with fewer than 50 workers by paying the full cost (100%) of training and assessment costs for their apprentices aged and for those aged formerly in care or with a local authority education, health and care plan. The levy operates across the UK, arrangements are in place for those employers that operate in Scotland, Northern Ireland and Wales. The recruitment industry is facing many changes this year, and the effects of these are yet to be fully understood. However, growing talent among the next generation, and helping people to transition their skills into new careers through apprenticeships is one way we can lay a strong foundation for ongoing jobs growth. While ONS labour market statistics show we are in the lowest period of unemployment in more than a decade, our Totaljobs Employment Index Report reveals that jobseekers are active and motived to search out different roles, that offer them greater fulfilment and flexibility. And with jobseekers demonstrating a huge appetite for apprenticeships, there are many opportunities on the horizon for savvy employers that position themselves to appeal to candidates at all experience levels. For more helpful advice, visit the totaljobs recruiter blog. John Salt, director, totaljobs These funding changes come in to effect from 1 May Take a look at GOV.UK for Apprenticeship reforms: information for employers and take action today. We hope you have enjoyed reading this month s edition of the Totaljobs Employment Index. For more info on how totaljobs can help your team, please get in touch
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