Like many within the property and construction space, we’re keeping a close eye on the property boom, analysing trends to see when and if the market will begin to cool. And in doing so we’re noticing something very interesting.
Current trends in the recruitment market are running in tandem with the property sector, with the issue of demand vs supply having a knock on impact on monetary figures.
Demand is increasing
Much like demand for property, the demand for employees who fulfil specific sets of criteria is high. And though at the start of the year we reported that specific areas like digital were more in demand, we’ve started to see this picture become reflective of the job market on the whole.
At Pitch we saw job vacancies increase by 10.6% during June, however the amount of applicants remains low, creating an issue of demand vs supply which is paralleled by what we’re seeing in the property sector.
Why is this happening?
Supply issues in the property sector are largely being accounted for by a limited availability of homes, which is putting people off putting their properties on the market. In short, it is being driven by an element of concern as to whether or not it is a safe move.
Following a year of redundancies and limited job growth, this concern is similarly reflected in the candidate market, who are worried about the stability of prospective employers and are in turn holding onto their current jobs in hopes for a clearer future.
Impact
Because there is a limited amount of supply, house prices have risen sharply over the past year, with prices on average 13.4% higher nationally. Likewise due to increases in demand, it would only be natural to see an uptick in salaries.
Our latest Midlands salary survey highlighted that some salaries across the region have increased by as much as £1,000 - £5,000 depending on job level, with key growth being seen across digital, creative and some account handling roles.
As we continue to keep an eye on the property boom, we will likewise be working closely with the job seeker market to identify changes and fluctuations in the demand vs supply trend. However, as demand continues to increase and as companies begin to regain their foothold, we expect the candidate shortage to remain a trend throughout the second to third quarter of 2021.
