Candidate shortages taking effect as UK opens up

Date: 8th July 2021
Author: Peter Hunt


As vaccination percentage statistics continue to rise and everything in the UK begins to slowly open back up and head towards a sense of normalcy, there has been a relatively rapid demand for quality candidates to fill the vacancies that have arisen across many sectors. The only problem is that, while job seekers are more active than earlier this year, there are still not enough candidates available to fill all the newly available roles.

There are a number of potential reasons for this lack of interest in roles, including the still rapidly rising number of COVID cases, specifically of the new Delta Variant. People are also choosing to prioritise their holidays during the warmer months after what feels like a long winter, and parents are opting to spend more quality time with their children now that the summer school holidays are upon us.

At the beginning of June, there were still 2.4 million people on furlough in the UK and, with the scheme only due to end in September, a large percentage of people will not know whether their positions will remain past October. People are naturally hesitant to apply for new jobs while on furlough as they will no longer be entitled to the furlough pay if things don’t work out in their new role.

It has also become clear that many professionals have adjusted to working remotely over the past 18 months and now have a desire for a better work/life balance and friendlier hours. They are not looking to apply for roles that do not offer flexibility in hours or the option of remote working.

A lack of market confidence is also playing a part in the candidate shortage. People are not feeling confident in the current economy after the impact of the pandemic, and this makes the idea of leaving a secure job much more intimidating. Additionally, there is a visible decrease in the presence of EU workers as many were forced to return to their home countries during the height of the pandemic and are now finding it difficult to gain entry back into the UK.

All of these reasons are contributing to a considerably lower number of candidates interested in applying for any of the rising number of permanent staff appointments, which has led to the most rapid increase in vacancies since 1998.

For now, it is looking like things might not start to pick up again until September or October, once the furlough scheme, and the summer, have come to an end.


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