December Market Update

By Phil Hodgson (MD Marchwood)

What a year 2024 has been so far. It has been one of the most random years of my nearly 20-year career in recruitment. It’s been very busy, but pretty much every month has felt like it’s had its busy periods, as well as times when it’s just tailed off. There have also been many examples of where different clients can be at totally opposite ends of the hiring spectrum, with a few clients having to make redundancies at the same time as others who are so busy they can’t get enough talent through the front door. Amongst the most common phrases said is, “stop-start”, “wavey”, and “unpredictable”.

As we near the end of 2024, it looks and feels like 2025 is going to be a barnstorming year.

As we all know there have been plenty of contributors. Inflation seemed to be under control, interest rates were dropping, and the market was growing... then we had the election. Take centre stage, Sir Kier Stamer and Rachel Reeves. Having such a strong mandate and knowing they had 5 years to repair any damage it may do seemed to make them want to start at the lowest possible ebb by talking everything down and blaming it all on their predecessors. As a result, we saw a historic budget which has cooled the market off. The end of the year has been a little slow specifically in sectors that are government-backed like healthcare where we are constantly hearing that there is a cracking pipeline but no confirmation of the green light on anything!

However, I think the good times are coming. 2025 should be very busy, once the government starts to confirm where and what they are going to spend their billions on.

So, my concern is not necessarily whether the work is going to be there for us all to dive into, but more a question of who is going to do it. Where is the talent going to come from? Ever since COVID-19, I think we have seen a steady decline in the amount of people coming here to the UK and a steady increase in people retiring, UK nationals emigrating, or Europeans heading back home. The net result is, that the battle for talent is going to be fierce and salaries are going to grow as that battle ensues.

Great news for candidates, a tricky balance to strike for employers.

So, where are we seeing the most activity right here and now? Currently, we are seeing a lot of strategic-level hiring in most regions of the country. Heavy-hitting technical specialists are in demand, as well as leaders who can bring work in the door. There are also a lot of companies looking to enter, expand, or solidify their presence in the Healthcare and Science and Medical markets preparing for a busy 2025 in these worlds. Data Centre experience is, as always, in high demand at all levels.

The engine room levels are sporadically busy. In Birmingham, electrical talent seems in demand, whilst London seems to be crying out for mechanical talent. However, as stated earlier we fully expect to go from sporadic to full throttle in the engine room early on in 2025, so now is a good time to start talking to firms if you are thinking about a move.

My advice to our customers, hit the button on hiring as early as you can to beat the rush, if you want someone, strike decisively, don’t mess around and risk making them feel undervalued, it will only cost you more in the long run.

To our candidates I say, know your value but it's not all about money. I have seen a number of money-focused moves recently where candidates have regretted it. Be amazing at your job, so amazing your managers can’t help but promote you and give you more opportunities. However, if you need to make a move, make a defining one. Make a big splash, get out there meet a number of businesses that can help you fulfill your ambitions, and pick wisely.

Of course, if you need us, in any capacity, the team and I are here to help you at every turn.