Balfor Recruitment Group investigates the impact a recession will have on the recruitment and healthcare industry.
The Bank of England has warned of a recession after the largest interest rate peak in 27 years.
Energy bills are expecting to rise again in October, as Brits are already suffering.
The average household is expecting to pay £300 for energy alone this winter, peaking at 13.3% in October.
Bloomberg Economics is predicting a 75% chance that a recession will strike by the end of 2023.
What to expect from the recruitment industry?
Hiring freezes are the clearest indicator of a recession. As businesses are less likely to hire new employees and keep as many staff on.
In 2008 The Great Recession pushed employment to its highest rates since 1995.
Figures from The Office for National Statistics show that 2.7M people were unemployed by the end of 2011.
Permanent jobs become less available and many were forced to turn to temporary work.
We can expect to see fewer vacancies and higher volumes of candidates.
This, in turn, will make recruiters’ jobs harder.
With a higher number of job seekers, it’ll make it harder to pinpoint ideal candidates.
A recession typically causes:
- Increased unemployment
- Reduced wage growth
- Reduced labour churn (the pace of reallocation of workers and jobs)
How will this affect the health and social care sector?
Since Covid-19, the NHS is struggling in many ways.
The BBC predict NHS day-to-day spending to grow by an average of 3.6% over the next 3 years.
As well as this, the NHS is currently tackling a worsening staffing crisis.
A recent report by MPs has revealed that 62,000 medical professional vacancies need to be filled.
This is due to large volumes of doctors, nurses and midwives quitting but not being replaced.
One of the reasons many are leaving the NHS is due to the wages failing to keep up with the cost of living.
Where does this leave us?
The government are facing many challenges, including how to support the NHS.
Balfor Recruitment Group is here to support and assist you in your future career.
Our teams have experience in their sectors and offer specialist knowledge and advice.
We have a variety of job opportunities throughout the West Midlands, in both healthcare and education.