Candidate shortage encouraging London’s recruitment crisis

Candidate shortage encouraging London’s recruitment crisis

Post pandemic, London faced a recruitment crisis as many job seekers left the capital, which has shown little sign of slowing down.

An article from the Evening Standard included words from Anna Purchas, London office senior partner at KPMG, who said that the capital was facing “the sharpest fall in permanent labour supply in the country” and warned that “the talent shortage in the capital has the potential to impact plans for growth significantly.”

As well as this “many companies have pulled back on hiring for permanent positions, mainly due to candidate shortages, according to a survey of 100 recruitment and employment consultancies.”

Check out the article in full here.

We caught up with Joss Collins, Regional Director in the Sanderson London office, to get his insight on what the market is like in London right now.

“While we see that wages are generally increasing it is not the case for all businesses as their flexible working policy for example will be more attractive than the few extra thousand pounds they're being offered on base salary somewhere else.

“Salaries are increasing but the full time working from home flexibility is beginning to lessen with more and more companies looking for people to be in 2-3 days a week. It will be interesting to see how this plays out over the coming months and years with companies introducing more and more innovative packages.

“We don't see this market as so much a shortage of people looking, it's more a case of there are so many vacancies for job seekers to choose from and we typically see that most candidates have 3-4 decent options on the table when they do take a look around for a new job.

“Even though workers may have chosen to move out of London we are seeing people either moving back or renting somewhere for 2-3 nights in the week to work then heading back to their homes in the home counties and splitting their time between the two. People may have started to live in places outside of central London, but they still certainly love to head into town 2-3 days a week to enjoy what the capital has to offer outside of working life and therefore they need a job that in London based or at least has a presence here.”