Notes on the Jobs Market
thoughts by Lawson Ware
Welcome to Lawson Ware-headhunting company, outlining some thoughts following the first Labour Budget in 14 years and other political events of last year.
As we begin the New Year and reflect back on 2024, it was an unsettled year for the recruitment market, tricky to predict and challenging to see where it will all end up. As widely predicted the Bank of England cut interest rates back in August but there is now little certainty as to when and how quickly rates will fall in 2025 and given the current turbulence in the market whether they will fall at all!
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The budget as with any well-publicised political event creates uncertainty in the market. During the budget, the Chancellor announced £40 billion in tax hikes, but insisted that these were in line with their promise not to raise taxes for working people. The result was an initial market shock; however, the markets had calmed but are now again in a volatile state.
So how have these events affected the employment market and more specifically the payments industry in the UK?
For companies the increase in National Insurance Contributions for employers has brought an additional cost in existing staff wages that will also mean higher costs to bring on new staff. For many companies this has meant a wait and see policy and one not to jump too quickly in making decisions to hire.
For employees again these events have brought about additional insecurity and for those who may have been contemplating a move in early this year, it is perhaps a time to take stock and wait and see.
Having said all of that it is interesting that in any down market, or periods of uncertainty that I have seen over the last 30 years, there are companies that always buck the trend, they see the opportunities rather than the threats.
So, what could be the possibilities in this type of market. The opportunity is that the companies who are in growth mode do then get the pick of the market. There are less companies hiring so when a company does hire and show growth they stand out from the crowd.
For the employees albeit with uncertainty if companies come knocking for their skill set, they will weigh up the opportunity against the current situation but often it is just what is needed when times are tougher. A new challenge in a growth company can far outweigh any negative thoughts in the market.
The payments sector has proved very resilient over the last 12 months and if companies do see the opportunities this could be a great time to attract the top talent.
If you would like to discuss any of the points further or if you are thinking about hiring great talent, please do get in touch for a confidential conversation.
David Lamble, Director at Lawson Ware Ltd
