Q3 shows uplifts in jobs and application activity
Following a lull in activity in Q2, activity stepped up in Q3, with rises in both jobs and applications. This is largely thanks to an incredibly productive September, with huge uplifts in both candidate and recruiter activity, proving that the trend for a busy September in the world of recruitment continues, even in uncertain economic times. Q3 figures are also proof that the market is performing better than expected, despite continued inflationary pressures and a raft of doom and gloom news reports.
Quarterly performance
- Both jobs and applications are up on the previous quarter, with jobs up 7% compared to Q2 and applications up 9% on Q2.
- The average application per job is 14, a drop from Q2.
- IT & Internet dominate once again, posting the highest percentage of jobs and receiving the most applications. However, in both cases its percentage share dropped on the quarter.
- Most jobs were posted on Mondays and Tuesdays, with 21% being posted on each of the two days at the start of the week – this marks a change to the day of the week that most jobs have been posted over the previous two quarters (Wednesday). As most applications are received on a Monday, this correlates nicely.
- Recruitment and candidate activity really ramped up in September, as is the annual trend. It was the month that most jobs were posted in Q3 and far more applications were received in September than in any other month in Q3.
ONS Labour Market Overview
As a trusted source, the labour market statistics published by the Office for National Statistics are used to help inform a range of government policies and are heavily utilised by the recruitment industry as a barometer of the state of the job market.
Vacancies fell on the quarter for the 14th consecutive period, decreasing by 64,000 to 989,000. However, they remain above the pre-pandemic rate.
The employment rate decreased to 75.5%, mainly driven by full-time self-employed workers. The rate is up on the year but remains below pre-pandemic levels. The number of people in employment is also down on the quarter by 207,000. The unemployment rate increased to 4.3%, and the rise is largely attributed to people unemployed for up to 12 months.
The economic inactivity rate increased to 21.1%, driven by people aged 16 to 24 years. Those inactive because of long-term sickness increased to another record high. Meanwhile, those inactive because they were looking after family or home decreased to a record low.
Job posting and applications per month
September has been an incredibly active month in the recruitment industry – something that many agencies will have been prepared for as it is an annual occurrence. Only June was more active for jobs across the entirety of 2023 so far, and applications are up there with March in terms of strength of candidate activity across the year. After the summer, there’s a real ‘school’s back in session’ feeling to September, which spills into both candidate and recruiter activity.
A break over the summer can give candidates a chance to reassess their careers and consider a move, plus parents have more time to think about a job hunt once the children are back at school. Recruitment activity tends to be slower over the school holidays when consultants are off at various points so that ramps up when the majority of people are back at work. No-one really knew if this September would buck the trend, with a general slow-down of jobs, but it appears that the annual September boost has continued in 2023.
Industries with most jobs and applications
IT & Internet may have been knocked off the top spot for applications in Q2 but it has reclaimed its title in Q3, along with – yet again – the top spot for jobs posted. Manufacturing and Education also appear in both top fives, indicating demand for jobs and candidates are fairly well-balanced. However, Education received 7% of applications but posted 15% of all jobs so there is a considerable difference there.
Health & Nursing posted nearly the same percentage of jobs as IT & Internet but received a tiny percentage of overall applications, illustrating the struggle that the industry continues to have with skills shortages. Public Sector is facing the same challenges. Meanwhile, Engineering & Utilities are having to cope with the opposite problem, with high levels of applications but lower jobs.
Average application per job by industry
- Banking received a huge average of 155 applications per job in Q3 – well over double the number they received in Q2.
- Insurance netted just under that number but it equated to a seismic seven times rise from Q2.
- Recruitment Sales received an average of 41 applications per job – a sluggish market in Q2 likely resulted in many recruitment businesses pausing hiring.
- As the industry receiving the second highest levels of applications but without the numbers of jobs to support those applications, it is perhaps no surprise that Engineering & Utilities also received a relatively high number of average applications per job (39).
- Just off the chart but worth noting is Retail & Wholesale’s relatively high number of applications. Wilko’s collapse has resulted in a total of nearly 11,000 redundancies (with more likely) and sent shockwaves through the high street, which has undoubtedly made retail businesses wary of hiring.
- Health & Nursing received an average of just two applications per job, the lowest of any quarter this year bar Health & Nursing’s average of one in Q1.
- Not for Profit & Charities received an average of just four applications per job – double that of Health & Nursing but a very small number nevertheless. Both industries have struggled hugely with labour shortages, especially Health & Nursing – their difficulty in finding qualified candidates to fill the huge number of vacant roles is well documented.
Average application per job board
- JobServe received an huge average of 96 applications per job in Q3 – far more than any other job board in any other quarter of 2023, whether generalist or niche.
- Caterer received the next highest with an average of 41 applications per job and Secs in the City came in third with 40.
- Just under Secs in the City was the first generalist job board to chart – TotalJobs with an average of 26 application per job.
- CV-Library and Reed.co.uk received a third of TotalJobs’ average, at 9 each.
