The professional recruitment market in London is expected to remain strong throughout 2023, with vacancies and salaries continuing to rise. According to the latest information from the Office for National Statistics (ONS), the unemployment rate in London sat at 4.7% from December 2022 to February 2023. Interestingly, this was the highest unemployment rate in the UK. The lowest is the South West at 2.3% but this data doesn’t necessarily reflect what is happening at the higher end of the recruitment market. London still has an excellent reputation as a global hub for business and finance.
The professional recruitment market is particularly buoyant in London, with demand for skilled workers outstripping supply. This is being driven by several factors, including the ongoing digital transformation of the economy, the growth of the tech sector, and the increasing demand for healthcare professionals. As a result, recruiters can expect strong demand for roles in software development, data science, cyber security, and healthcare.
There is a skills shortage in London, particularly in the areas noted above. APSCo has made a series of recommendations to the government on how to fix these problems, including increasing the number of apprenticeships and providing more funding for STEM education.
In terms of salaries, the professional recruitment market in London is also highly competitive. The average salary for a professional in London is £52,500 per year, with salaries for some roles, such as software developers and data scientists, reaching well into six figures. Recruiters can expect to see salaries continue to rise (at least in cash terms) in 2023, as businesses compete for the best talent and high inflation remains an issue.
The recent Spring Budget by Chancellor Jeremy Hunt is unlikely to significantly impact London. The budget included some measures to support businesses, such as changes to capital allowances and tax changes on pensions.
Overall, the London recruitment market is expected to remain strong in 2023. Vacancies and salaries are both expected to rise, and there is a strong demand for skilled workers. APSCo will publish more recruitment market data in due course which members will receive for free.
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